Question
You expect that the Mexican peso will appreciate against the Australian dollar from its spot rate of A$0.2545 to A$0.2969 in one year. The following
You expect that the Mexican peso will appreciate against the Australian dollar from its spot rate of A$0.2545 to A$0.2969 in one year. The following interbank lending and borrowing rates exist: Lending Rate Borrowing Rate Australian dollar 7.96% 8.86% Mexican peso 8.24% 9.24% You have a borrowing capacity of either 2 million Australian dollars or 5 million Mexican pesos in the interbank market. Without using your own deposited fund, estimate the profits in percentage. (enter 2 decimal places number with on sign or symbol)
i got profit 1172981.58 peso but not sure right or wrong. how about percentage?
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