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Business, 06.03.2020 22:27 natalie2sheffield

Assume the following information regarding U. S. and European annualized interest rates: Currency Lending Rate Borrowing Rate U. S. Dollar ($) 6.73% 7.20% Euro (€) 6.80% 7.28% Trensor Bank can borrow either $20 million or €20 million. The current spot rate of the euro is $1.13.Furthermore, Trensor Bank expects the spot rate of the euro to be $1.10 in 90 days. What is TrensorBank's dollar profit from speculating if the spot rate of the euro is indeed $1.10 in 90 days?

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