Question: how would i get to this answer? You expect that the Mexican peso will appreciate against the Australian dollar from its spot rate of A$0.2064

how would i get to this answer?

You expect that the Mexican peso will appreciate against the Australian dollar from its spot rate of A$0.2064 to A$0.2623 in one year. The following interbank lending and borrowing rates exist: Lending Rate Borrowing Rate Australian dollar 7.73% 8.87% Mexican peso 8.079 9.1396 You have a borrowing capacity of either 2 million Australian dollars or 5 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: 0.22 X The correct answer is: 28,47

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