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Please show all the needed work! Thank you! Given interest rates: Deposit rate: 0.40% in & 1.0% in Borrow rate: 0.50% in & 1.1% in
Please show all the needed work! Thank you!
- 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.
- Cross rates (2 point)
- GBP (appreciates/depreciates) against EUR by _______________
- EUR (appreciates/depreciates) against GBP by _______________
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Clever Girl Finance Learn How Investing Works Grow Your Money
Authors: Bola Sokunbi
1st Edition
1119696739, 978-1119696735
