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Question 6: Chance Bank expects that the Singapore dollar will depreciate against the U.S. dollar from its spot rate of $0.44 to $0.43 in 60

Question 6:
Chance Bank expects that the Singapore dollar will depreciate against the U.S. dollar from its spot rate of $0.44 to $0.43 in 60 days. The following interbank lending and borrowing rates exist: CURRENCY LENDING RATE BORROWING RATE U.S. Dollar 7% 7.1% Singapore Dollar 21% 23% Chance Bank considers borrowing 10 million Singapore dollars in the interbank market and investing the funds in U.S. dollars for 60 days. Estimate the profits (losses) that could be earned from this strategy. Should Chance Bank pursue this strategy? Please show all your work

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