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Current Spot rate AS 0.62/Euro 360 day forward rate AS 0.65/Euro 360 day Australian interest rate: 2.5% 360 day German interest rate: 1.5% For which

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Current Spot rate AS 0.62/Euro 360 day forward rate AS 0.65/Euro 360 day Australian interest rate: 2.5% 360 day German interest rate: 1.5% For which of the following trades is a positive net profit possible? Borrow in Euros, Exchange at spot, Deposit in Euros, sell forward Borrow in Euros, Exchange at spot, Deposit in Australian Dollars and sell forward Borrow in Australian Dollars, Exchange at spot, Deposit in Australian Dollars, sell forward Borrow in Australian Dollars, Exchange at spot, Deposit in Euros, sell forward Current Spot rate AS 0.62/Euro 360 day forward rate AS 0.65/Euro 360 day Australian interest rate: 2.5% 360 day German interest rate: 1.5% For which of the following trades is a positive net profit possible? Borrow in Euros, Exchange at spot, Deposit in Euros, sell forward Borrow in Euros, Exchange at spot, Deposit in Australian Dollars and sell forward Borrow in Australian Dollars, Exchange at spot, Deposit in Australian Dollars, sell forward Borrow in Australian Dollars, Exchange at spot, Deposit in Euros, sell forward

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