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13. Carry trade Suppose the 6-month interest rate is 4% in USA and 1% in Sweden. If the USD/SEK exchange rate does not move from
13. Carry trade Suppose the 6-month interest rate is 4% in USA and 1% in Sweden. If the USD/SEK exchange rate does not move from its current level of 9.6075, what would be the profit on a 1mln USD position in the carry trade? (Note: interest rates are stated per annum!) a) 15 000 USD Cb) 7 500 USD Cc) 20 000 USD + d) 30 000 USD
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Financial Analysis And Modeling Using Excel And VBA
Authors: Chandan Sengupta
2nd Edition
047027560X, 978-0470275603
