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today JPY spot (USD/JPY) is 105. As the international financial manager of River Hawk Bank, you expect it to go up to 110 in 25
today JPY spot (USD/JPY) is 105. As the international financial manager of River Hawk Bank, you expect it to go up to 110 in 25 days. With Borrowing capacity of 1 million in USD and 100 million in JPY, you are asked to execute Currency Speculation without using the company money (deposit) . The Lending rate for JPY is .5% and the borrowing rate for JPY is 1.5% the lending rate for USD is 1% and the borrowing rate for USD is 2%. If you are right, how much profit will you gain in next 25 days? Show me the profit in USD down two decimals.
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