Question: How do I get the correct answer for this? You expect that the Mexican peso will appreciate against the Australian dollar from its spot rate
How do I get the correct answer for this?
You expect that the Mexican peso will appreciate against the Australian dollar from its spot rate of A\$0.2270 to A$0.2698 in one year. The following interbank lending and borrowing rates exist: You have a borrowing capacity of either 2 million Australian dollars or 6 million Mexican pesos in the interbank market. Without using your own deposited fund, estimate the profits in percentage. (enter 2 decimal places number with no sign or symbol) Answer: The correct answer is: 19.90
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