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Currency Lending rate (Annual) Borrowing rate (Annual)


dollar 7.00% 7.20%

New Zealand dollar 6.80% 7.00%

Bank of American has the capacity to borrow $5million from Chase bank. If Bank of America's forecast is correct, what will be its US dollar profit of Bank of America from this foreign exchange speculation over the 90 days period?

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Bank of America's assumption is NZ$ shall appreciate from 0.48 to 0.50 per US$. It has a facility to borrow US$ 5 million @... View the full answer

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