Reagan Bank believes the New Zealand dollar will appreciate over the next five days from $0.45 to $.50. The following annual interest rates apply:
Currency Lending Rate Borrowing Rate Dollars 7.10% 7.50% New Zealand Dollars (NZ$) 6.80% 7.25%
Reagan Bank has the capacity to borrow either NZ$10 million or $5,200,000 million. If Reagan Bank's forecast if correct, what will its dollar profit be from speculation over the five-day period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)?