esos GivenGiven: Blue Demon Bank expects that the Meyican peso will depreciate against the dollar from its spot rate of $0.13 to $0.09 in 10 days.The following interbank lending and borrowing rates exist:• The lending rate in dollars is 9 percent.• The borrowing rate in dollars is 11 percent.• The lending rate in pesos is 15 percent.• The borrowing rate in pesos is 17 percent.To find: Forward exchange rate in pesos per dollar after 10 days.Solution:Let us first calculate the U.S. dollar discount factor:Forward discount factor in 10 days= 1/(1 + R) = 1/(1 + 0.09 * 10/360) = 0.99417Similarly, calculate the peso discount factor:Forward discount factor in 10 days= 1/(1 + R) = 1/(1 + 0.15 * 10/360) = 0.99722Calculation:Forward exchange rate after 10 days= Spot rate × (1 + rf / 1 + rd )= $0.13 × (0.99722 / 0.99417)= $0.13 × 1.003056= $0.1304So, the forward exchange rate in pesos per dollar after 10 days is $0.1304.