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River Hawk Bank forecasted that the Euro will change from $1.10 to $1.15 in next 30 days. You have 50 Million borrowing capacity in both
River Hawk Bank forecasted that the Euro will change from $1.10 to $1.15 in next 30 days. You have 50 Million borrowing capacity in both currencies (USD and EUR) and the borrowing rate for both currencies is 2% and lending rate for both currencies is 1.5%. If your prediction is right and how much profit can you make? (in USD only). You are not allowed to use any of the bank's deposit money. Ans: _USD
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