Question
XY Bank believes the Canadian dollar will appreciate over the next five days from $.48 to $.50. The following annual interest rates apply: Currency Lending
XY Bank believes the Canadian dollar will appreciate over the next five days from $.48 to $.50. The following annual interest rates apply:
Currency | Lending Rate | Borrowing Rate |
Dollars | 7.10% | 7.50% |
Canadian dollar | 6.80% | 7.25% |
XY Bank has the capacity to borrow either Canadian dollar 10 million or $5 million. What will the profit from speculation?
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The Almanac Of Online Trading
Authors: Terry Wooten
1st Edition
0071358595, 978-0071358590
