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XY Bank expects that the Singapore dollar will depreciate against the dollar from its spot rate of $.43 to $.42 in 50 days. The following

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XY Bank expects that the Singapore dollar will depreciate against the dollar from its spot rate of $.43 to $.42 in 50 days. The following interbank lending and borrowing rates exist: XY Bank considers borrowing 10 million Singapore dollars in the interbank market and investing the funds in dollars for 50 days. Estimate the profits (or losses) that could be earned from this strategy. Should XY Bank pursue this strategy

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