CCC. Co is a U.S. firm that executes a carry trade in which it borrows Brazilian Real and invests in Euros. CCC uses $8,200,000 of its own funds and borrows an additional 65,000,000 Brazilian Real. It will pay 0.37% (monthly rate) on the Real borrowed for the next month and will earn 0.60% (monthly rate) on funds invested in Euro. Assume that the Brazilian Real spot rate is $0.1794 and the Euros spot rate is $1.1622. CCC uses todays spot rate as its best guess of the spot rates one month from now.

1) Compute the cross-exchange rate of 1 Brazilian Real = x Euros.

2) Compute the total amount of Euro invested.

3) Compute the value of the Euro after 30 days.

4) Compute the value of the loan, in Brazilian Real, after 30 days.

5) Compute the number of Euro required to settle the loan in Real.

6) Compute the gain/loss in U.S. Dollars.