Baylor Bank believes the Canadian dollar will depreciate over the next 3 days from $1.46 to $1.03. The following annual

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Baylor Bank Believes The Canadian Dollar Will Depreciate Over The Next 3 Days From 1 46 To 1 03 The Following Annual 1 (305.81 KiB) Viewed 44 times

Baylor Bank believes the Canadian dollar will depreciate over the next 3 days from $1.46 to $1.03. The following annual interest rates apply: Currency Lending Rate Borrowing Rate Canadian Dollars (C$) .0520 .0580 Dollars 0.051 .0595 Baylor Bank has the capacity to borrow either Canadian $100,000,000 or US $75,000,000. If Baylor Bank's forecast is correct, what will its dollar profit be from speculation over the 3 day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)?