Suppose C$ is expected to appreciate from $.65 to $.67 in 30 days. To profit from this, you want to borrow $1M from your bank, convert it to C, and lend it at 5.5% for one month. Then, you convert C$ back to US\$ and pay the US\$ loan with interest (6.1\%). Answer the following questions. 1. Convert $1M to C. Show it to the nearest whole number (no decimals). 2. Then you lend C$ at 5.5% for one month. How much is your ending balance in C$ (nearest whole number, no decimal)? 3. Convert C$ to US\$. How much is it (nearest whole number)? 4. How much is your loan payment with interest (6.1\%) in US\$ (nearest whole number)? How much is your speculation profit after making the above loan payment w/ interest (nearest whole number)? Suppose the interest rate in the euro zone is 0.6% for the coming month, while it is 1%-in UK. The exchange rate for euro and British pound is $1.1 and $1.2, respectively. To derive profit, you plan to borrow one million euro, convert it to British pound, lent it at 1% for one month, and then convert it to euro. Answer the following. 1. Convert one million euro to British pound (nearest whole number). 2. Lend it at 1% for one month. How much is vour balance in British pound (nearest whole number)? 3. Convert the ending balance in British pound to euro. How much is it in euro (nearest whole number). 4. How much is your loan payment in euro (nearest whole number)? 5. How much is your carry trade profit in euro and in US\$, respectively?