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Wu'SLUN Une A. Joymang Bank expects that the Ghanaian cedi will depreciate against the dollar from its spot rate of US$0.15 to US$0.14 in 10

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Wu'SLUN Une A. Joymang Bank expects that the Ghanaian cedi will depreciate against the dollar from its spot rate of US$0.15 to US$0.14 in 10 days. The following interbank lending and borrowing rates exist: Currency U.S. dollar Ghanaian cedi Lending Rate 8.0% 8.5% Borrowing Rate 8.3% 8.7% Assume that Joymang Bank has a borrowing capacity of either US$10 million or 70 million cedis in the interbank market, depending on which currency it wants to borrow. Required How could Joymang Bank attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy. (5 marks) Assume all the preceding information with this exception: Joymang expects the cedi to appreciate from its present spot rate of US$0.15 to US$0.17 in 30 days. How could it attempt to capitalize on its expectations without using deposited funds? Estimate the profits that could be generated from this strategy

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