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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: You use
| 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:
- You use your own funds: $100
- You can borrow additional funds either 625 or 500
- Expectation:
- USD is expected to appreciate by 1.5% against EUR in 1 month.
- USD is expected to depreciate by 2.5% against GBP in 1 month.
How much profit do we make?
- $37.90
- $24.20
- $89.60
- $17.30
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