Question 26 Which one of the following market conditions will produce a profit for a hedge-fund manager that is planning to borrow in UK and invest in the US. One could answer this question without a calculator Market Condition 1 Market Condition 2 Market Condition 3 Market Condition 4 O Market Condition 1 O Market Condition 2 O Market Condition 3 O Market Condition 4 Interest Rate in US 10% 10% 10% 10% Interest Rate in UK 5% 5% 15% 15% Expected Annual Percentage Change in the Direct Quote for the British Pound +7% +8% -3% -7%