In the beginning of 2015, the interest rate of some currencies are the following: a. What are

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In the beginning of 2015, the interest rate of some currencies are the following:

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a. What are in theory the best carry trade cases?

b. If you take in account the exchange rate variation risk, what carry trade operation will you favor? Explain.

c. Calculate the carry trade between euro and Mexican Peso and Russian Rouble.
Looking at exchange rate data base you have accessed on internet, is this carry trade positive as of January 2017?

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International Economics Theory And Policy

ISBN: 9781292409719

12th Edition

Authors: Paul Krugman , Maurice Obstfeld, Marc Melitz

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