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Question 44 5 pts Diamond Bank believes the New Zealand dollar will appreciate over the next five days from $0.48 to $0.50. The following annual
Question 44 5 pts Diamond Bank believes the New Zealand dollar will appreciate over the next five days from $0.48 to $0.50. The following annual interest rates apply: Currency Lending Rate Borrowing Rate Dollars 7.10% 7.50% New Zealand dollar (NZ$) 6.80% 7.25% Diamond Bank has the capacity to borrow either NZ$10 million or $5 million. If Diamond Bank's forecast is correct, what will its dollar profit be from speculation over the five-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)? Assume 360 days in a year. $104,262 $208,044 O $500,520 $521,325 $413,419
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