The ABC Bank of USA expects the Swiss franc to depreciate against the dollar from its current sp rate of $1.0082 to $.9696 (per unit) in 60 days. The following rates are available in the interbank market. All rates are compounded daily on a 360 days/year basis. LENDING RATE BORROWING RATE U.S. 5.5 6.0 Switzerland 5.3 5.8 Assume that the bank has a borrowing capacity of either $5m or SF7m in the interbank market. Show how the Bank could capitalize on its expectation using only its borrowing capacity and use your analysis to answer the question below. To capitalize on its expectation ABC bank should start as follows: Borrow $5m at 5,5%, convert to Swiss franc and invest proceeds in Switzerland at 5.8% Borrow $5m at 6.0%, convert to Swiss franc and invest proceeds in Switzerland at 5.3% Borrow 7m Swiss franc at 5.8%, convert to dollars and invest proceeds in U.S. at 5.5% Borrow 7m Swiss franc at 5.3%, convert to dollars and invest proceeds in U.S. at 6.0% None of the above answers is correct