1. General Electric (GES US Tim Hexecutes carry trade. The company borrows euros and invests in British pounds. GE can invest $100.000 af its own funds and borrow an additional 600.000 euros at 1%. Assume the following: GE can eam 5% on funds invested in Britain. The spot rates are $1.20 and $1.5/E at the start and end of the investment period. Using the table below compute and explain how GE could capitalize on the interest rate differential pl 3. You just came back from Canada, where the Canadian dollar was worth S. 70. You still have CS200 from your trip and could exchange them for dollars at the airport, but the airport foreign exchange desk will only buy them for $60. Next week, you will be going to Mexico and will need pesos The airport foreign exchange desk will sell you pesos for S. 10 per peso. You met a tourist at the airport who is from Mexice and is on his way to Canada He is willing to buy your CS200 for 1.100 pesos. Should you accept the offer or cash the Canadian dollars in at the airport? Compute and fully explain 1. General Electric (GES US Tim Hexecutes carry trade. The company borrows euros and invests in British pounds. GE can invest $100.000 af its own funds and borrow an additional 600.000 euros at 1%. Assume the following: GE can eam 5% on funds invested in Britain. The spot rates are $1.20 and $1.5/E at the start and end of the investment period. Using the table below compute and explain how GE could capitalize on the interest rate differential pl 3. You just came back from Canada, where the Canadian dollar was worth S. 70. You still have CS200 from your trip and could exchange them for dollars at the airport, but the airport foreign exchange desk will only buy them for $60. Next week, you will be going to Mexico and will need pesos The airport foreign exchange desk will sell you pesos for S. 10 per peso. You met a tourist at the airport who is from Mexice and is on his way to Canada He is willing to buy your CS200 for 1.100 pesos. Should you accept the offer or cash the Canadian dollars in at the airport? Compute and fully explain