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DK Investment Co is a US firm that executes a carry trade in which it borrow euros ( where interest rates are presently low )

DK Investment Co is a US firm that executes a carry trade in which it borrow euros (where interest rates are presently low) and invests in British pounds (where interest rates are presently high). DK Investment uses $100,000 of its own funds and borrow an additional euro 600,000. It will pay 0.5% on its euro borrowed for the next month and will earn 1.0% per month on tunds invested in UK (British pounds). Assume the euro spot rate is $1.2? euro and the BP rate is $1.9BP and after one month the FX rates will be the same. What will be DK Investment Net US $ profit from this carry trade investment? For the calculation of cross FX rate, use two decimal point after rounding up (e.g,1.1101 is 1.11)
around $4,400
around $4,600
around $4,200
around $4,800
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