Deposit rate Borrow rate

0.4% (1 month) 0.5% (1 month)

1.0% (1 month) 1.1% (1 month)

Spot rates: $1.2/ & $1.5/

Investment Plan:

1. You use your own funds: $100
2. You can borrow additional funds either 625 or 500

Expectation:

1. USD is expected to appreciate by 1.5% against EUR in 1 month.
2. USD is expected to depreciate by 2.5% against GBP in 1 month.

How much profit do we make?

1. $37.90
2. $24.20
3. $89.60
4. $17.30