3. (Ch. 3) Carry Trade a. Explain "carry trade." (3 points) b. If the interest rates for the GBP, USD, and JPY are 6%, 4%, and 1%, respectively, and you would like to have a carry trade, which currency would you like to borrow? (2 points) Why? (3 points) c. If you have a carry trade, what may you earn? (3 points) What risk may you have? (3 points) d. What will be expected in practice if everyone in the markets is doing the same thing with you (carry trade)? (3 points)