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Question 12 (5 points) Current Spot rate A$ 0.62/Euro 360 day forward rate A$ 0.65/Euro 360 day Australian interest rate: 2.5% 360 day German interest

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Question 12 (5 points) Current Spot rate A$ 0.62/Euro 360 day forward rate A$ 0.65/Euro 360 day Australian interest rate: 2.5% 360 day German interest rate: 1.5% For which of the following trades is a positive net profit possible? Borrow in Euros, Exchange at spot, Deposit in Euros, sell forward Borrow in Australian Dollars, Exchange at spot, Deposit in Australian Dollars, sell forward Borrow in Euros, Exchange at spot. Deposit in Australian Dollars and sell forward Borrow in Australian Dollars, Exchange at spot, Deposit in Euros, sell forward

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