Andrew is a Newzealand investor who wants to invest in Cerman stock markets. Consider the following facts about Germany over the course of the neit 120 dayn. there is a 30% chance that the euro wil fose 200 , ot its value relative to the NZ dallat and the German stock inarhet will drop by 107 , and there is a 70% chance that. the euro will appreciate by 100 of its value relative to the NZ dollar and the German atock market will rise by 356. Acsume that Andrew has no current ansets or liabilities in Germany, but he can borrow NZD 1 milion at 6% per annum. Assuminas a 360-day year, haw much profits can Asidrew earn lor losel ly borrowing NZO 1. million and investing in Geiman stock makets for the next. 120 days? N20 235,500 NiDD 205,500 N20 255.500 NRD 215,500 N2D 195,500 Question 7 Company AAA and BBB have the following cost of borrowing: Compary AAA: fixed rate 8.5% per annum AND floating rate LIBOR+0.5\% per annum. Company BB8: freed rate 9.9% per annum AND floating rate LBOR+2.2\% per annum. What is the quality spread differential for an interest rate swap? 1.55 D.3R 1.7% a.b