3. Where to borrow? (1point) Borrow today Payoff after 1 month Payoff after 1 month in So, it is cheaper to borrow from 4. Where to invest? (1 point) Investing today Withdraw after 1 month Withdraw after 1 month in So, it is better to invest in 5. Todhu Given interest rates: o Deposit rate: 0.40% in & 1.0% in o Borrow rate: 0.50% in & 1.1% in Investment Plan: o You use your own funds: $100 o You can borrow additional funds either 250 or 200 Spot rates: EUR/USD = 1.2 & GBP/USD = 1.5 Expectation: o USD is expected to depreciate by 2.5% against EUR in 1 month. o USD is expected to appreciate by 1.5% against GBP in 1 month. 3. Where to borrow? (1point) Borrow today Payoff after 1 month Payoff after 1 month in So, it is cheaper to borrow from 4. Where to invest? (1 point) Investing today Withdraw after 1 month Withdraw after 1 month in So, it is better to invest in 5. Todhu Given interest rates: o Deposit rate: 0.40% in & 1.0% in o Borrow rate: 0.50% in & 1.1% in Investment Plan: o You use your own funds: $100 o You can borrow additional funds either 250 or 200 Spot rates: EUR/USD = 1.2 & GBP/USD = 1.5 Expectation: o USD is expected to depreciate by 2.5% against EUR in 1 month. o USD is expected to appreciate by 1.5% against GBP in 1 month