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QUESTION 33 The following information applies to the next question (which is from the previous three questions). Citi Bank believes the Singapore will appreciate over
QUESTION 33 The following information applies to the next question (which is from the previous three questions). Citi Bank believes the Singapore will appreciate over the next six days from $.71 to $.77. The following annual interest rates apply: Currency Lending Rate Borrowing Rate U.S. Dollar ($) 5.0096 6.0096 Singapore dollar (55) 4.8596 5.5096 Citi Bank has the capacity to borrow either 5$20 million or $10 million. Assume 360 days in a year for simplicity and set your decimal to at least 6 places. If Citi Bank's forecast is correct, what will its dollar profit be from speculation over the six-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)
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