Whitehouse International Bank expects that the Jamaican dollar will depreciate against the dollar from its spot rate of $.0070 to $ .0065 in 15 days. The following interbank lending and borrowing rates exist US Dollar Lending Rate 9.0% US Dollar borrowing rate 9.3% Jamaican Dollar Lending rate 15.5% Jamaican Dollar borrowing rate 15.7% Assume that Whitehouse International Bank can borrow $100 million JAD in the interbank market.

Required: How could Whitehouse International Bank attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy. (7 marks