In: Finance
Currency |
Lending Rate |
Borrowing Rate |
Dollars |
7. 0% |
7.2% |
Singapore dollar |
22.0% |
24.0% |
Diamond Bank considers borrowing 10 million Singapore dollars in the interbank market and investing the funds in U.S. dollars for 60 days. Estimate the profits (or losses) that could be earned from this strategy. Should Diamond Bank pursue this strategy?