Question 21 (3.7 points) Bank One believes the Canadian dollar (C$) will appreciate over the next 180 days from $.77 to $.80. The following annual interest rates apply Currency Dollars Canadian dollar (CS) Lending Rate 6.75% 6.85% Borrowing Rate 7 25% 7.30% Bank One has the capacity to borrow either C$10 million or $5 million. If Bank One's forecast is correct, how shall Bank One implement its speculating trading activities and what will its dollar profit be from speculation over the 180 day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations? (30/360 convention used for the interest calculation, ie, assuming 360 days a year) Bank One shall borrow A$10. Doing so Bank One will realize the profit of $288,950.00 Bank One shall borrow $5 million. Doing so. Bank One will realize the profit of $ 188, 149.35. Bank One shall borrow CS10. Doing so. Bank One will realize the profit or $277 900.00 Bank One shall borrow $5. Doing so Bank One will realize the profit of $191,477 27