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Please show all needed work! Thanks! Given interest rates: Deposit rate: 0.40% in & 1.0% in Borrow rate: 0.50% in & 1.1% in Investment Plan:
Please show all needed work! Thanks!
- Given interest rates:
- Deposit rate: 0.40% in & 1.0% in
- Borrow rate: 0.50% in & 1.1% in
- Investment Plan:
- You use your own funds: $100
- You can borrow additional funds either 250 or 200
- Spot rates:
- EUR/USD = 1.2 & GBP/USD = 1.5
- Expectation:
- USD is expected to depreciate by 2.5% against EUR in 1 month.
- USD is expected to appreciate by 1.5% against GBP in 1 month.
- Exchange rate in 1 month (1.8 points)
- EUR/USD = ______________
- USD/EUR = ______________
- GBP/USD = ______________
- USD/GBP = ______________
- GBP/EUR = _______________
- EUR/GBP = _______________
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