7 With r$12.50 percent, r14.00 percent, S($/)2.25, and S 10($/)1.50, in which currency would you borrow? What
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7 With r$¼12.50 percent, r£¼14.00 percent, S($/£)¼2.25, and S
10($/£)¼1.50, in which currency would you borrow? What is the expected gain on each $1 million borrowed from making the correct choice?
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