hn works for a German firm. His firm needs $300,000 US in the USA for a year.

As his firm is unknown in the USA, it is unable to get a credit line in the USA. Current one year forward rate is 3.1$/ and spot rate is 3$/. He can borrow up to 1,000,000 at an interest rate of 8% in Germany. Given the information and his opportunities, he decides to generate a synthetic credit line using his bank facility. The implied interest rate for his synthetic credit line will be ______.

Question 4 options:

	around 12.10%
	around 11.22%
	around 10.23%
	None of these
	around 9.25%

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