XQuestion $2[20$ marks$]$ A$.$ Sargassum Bank speculates that the Swiss Franc will depreciate against the dollar from its spot rate of $\backslash (\backslash$$ $1\mathrm{.}10\backslash )$ to $\backslash (\backslash$$ $1\mathrm{.}07\backslash )$ in $60$ days. The following interbank lending and borrowing sates loss: exist: Assume that Sargassum Bank has a borrowing capacity of either USD $\backslash (\backslash$$ $20\backslash )$ million or CHF $15$ million Francs in the interbank market, depending on which currency it wants to borrow. Estimate the profit$/$loss to Sargassum Bank if they attempt to capitalise on their expectations without using deposited funds, Explain if interest rate parity exists in this