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Please help! A currency dealer has good credit and can borrow either $1,000,000 or 800,000 for one year. The one- year interest rate in the
Please help! A currency dealer has good credit and can borrow either $1,000,000 or 800,000 for one year. The one- year interest rate in the US. is i$ = 2% and in the euro, zone the one-year interest rate is t = 6%. The spot exchange rate is $1.25 1.00 and the one-year forward exchange rate is $1.20 1.00 g) If want your profit to be in , how much of the investing currency is converted to the borrowing currency? h) State the profit
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