Question 48 1 pts A currency speculator expects the spot rate of EUR to change from USD 1.00 to USD 1.10 in one year. Assume the speculator has access to credit lines of USD 10,000,000 in the US and EUR 10,000,000 in Europe. The annual borrowing and lending rates are 3% in US and 2% in Europe. In order for the speculator to take advantage from the expected spot rate change in EUR, it should: borrow in EUR and invest in USD borrow in USD and invest in EUR Question 49 1 pts A currency speculator expects the spot rate of EUR to change from USD 1.00 to USD 1.10 in one year. Assume the speculator has access to credit lines of USD 10,000,000 in the US and EUR 10,000,000 in Europe. The annual borrowing and lending rates are 3% in US and 2% in Europe. If his forecast is correct, the speculator's expected profit at the end of the year will be: EUR 920,000 USD 100,000 EUR 100,000 USD 920,000