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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 $ of its own funds and borrow an additional euro It will pay on its euro borrowed for the next month and will earn per month on funds invested in UK British pounds Assume the euro spot rate is $ British pound's spot rate is $so pounds is worth euro and after one month, the FX rates will be the ame What will be DK Investment Net US$ profit from this carry trade investment?
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