he ABC Bank of USA expects the Swiss franc to depreciate against the dollar from...
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Finance
he ABC Bank of USA expects the Swiss franc to depreciate against the dollar from its current spot rate of $1.0082 to $.9696 (per unit) in 60 days. The illowing rates are available in the interbank market. All rates are compounded daily on a 360 days/year basis. Assume that the bank has a borrowing capacity of either $5m or $57m in the interbank market. Show how the Bank could capitalize on its expectation uning only its berrowing capacity and use your analysis to answer the following question: The total profit powible if ABC correctly capitalizes on its expectation will be. sin263 s261.47. 3) 3209
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