Assume the following information regarding U. S. and European annualized interest rates:Currency Lending Rate Borrowing RateU. S. Dollar ($) 6.73% 7.20%Euro (€) 6.80% 7.28%Bank Z can borrow either $20 million or €20 million. The current spot rate of the euro is $1.13. Furthermore, Bank Z expects the spot rate of the euro to be $1.10 in 90 days. What is Bank's Z dollar profit from speculating if the spot rate of the euro is indeed $1.10 in 90 days?
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