Banner Bank believes British pounds () will appreciate over the next 36 days from $1.24 to $1.26. The following annual interest rates apply: Currency                  Lending Rate Borrowing Rate Dollars                      6.75%              7.25% British pounds ()             7.00%              7.30% Banner Bank has the capacity to borrow either 5 million or $5 million. If Banner Bank's forecast is correct, how shall Banner Bank implement its speculating trading activities and what will its dollar profit be from speculation over the 36-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)? (30/360 convention used for the interest calculation, i.e., assuming 360 days a year)

Question 30 options:

	Banner Bank shall borrow 5 million. Doing so, Banner Bank will have the speculative profit of $78,439.52 .
	Banner Bank shall borrow $5 million. Doing so, Banner Bank will have the speculative profit of $79,959.68.
	Banner Bank shall borrow 5 million. Doing so, Banner Bank will have the speculative profit of $80,979.84 .
	Banner Bank shall borrow $5 million. Doing so, Banner Bank will have the speculative profit of $81,483.87.