Answer:
a) if you borrow 10 million Singapore dollars today and purchase $4,300,000. You then invest this money and earn $4,300,000 x 7% x 2/12 = $50,167 in interests. At the end of the 60 days you will have $4,350,167.
You can use the $4,350,167 to purchase 10,357,540 Singapore dollars.
At this moment, you will owe 10,000,000 x 24% x 2/12 = 400,000 in interests + 10,000,000 principal = 10,400,000 Singapore dollars
net loss = 10,357,540 - 10,400,000 = 42,460 Singapore dollars
b) No, they shouldn't since they will lose money. The problem with this operation is that the borrowing rate for Singapore dollars are too high (24%) vs a lending rate of 7% in US dollars.
