Carry Trade 2017 2018 2019 2020 i$A(%) 6.53 6.70 4.91 5.94 is(%) 6.50 6.00 2.44 1.45 SAUD/USD 2.2599 2.2015 2.1117 2.1231 One-year Forward Rate 2.3443 2.2748 2.2546 2.2052 Please type your answers as a number to 0 decimal place in boxes below. For example, if your answer is AUD12345.67, please enter 12346. Suppose you are a US investor and you conduct the following transactions. You borrow $1,000,000 at the start of each year and invest in AUD for one year, then you convert back to USD at the end of that year. One-year interest rates, the exchange rate between AUD and USD, and one-year forward rates are provided above for the years 2017 to 2020. One-year interest rates in Australia and the US are on January 1 each year, and the exchange rate and forward rate are the amounts of AUD per USD on December 31 each year. What your maximum transaction USD profit in 2020? (4 marks) Carry Trade 2017 2018 2019 2020 i$A(%) 6.53 6.70 4.91 5.94 is(%) 6.50 6.00 2.44 1.45 SAUD/USD 2.2599 2.2015 2.1117 2.1231 One-year Forward Rate 2.3443 2.2748 2.2546 2.2052 Please type your answers as a number to 0 decimal place in boxes below. For example, if your answer is AUD12345.67, please enter 12346. Suppose you are a US investor and you conduct the following transactions. You borrow $1,000,000 at the start of each year and invest in AUD for one year, then you convert back to USD at the end of that year. One-year interest rates, the exchange rate between AUD and USD, and one-year forward rates are provided above for the years 2017 to 2020. One-year interest rates in Australia and the US are on January 1 each year, and the exchange rate and forward rate are the amounts of AUD per USD on December 31 each year. What your maximum transaction USD profit in 2020? (4 marks)