Read the Article: Short Sellers Bet Tether, Cryptos Central Bank, is vulnerable to a Run from the Wall Street Journal (available in Blackboard) and answer the following questions:

Describe how the investment firms are planning to make money betting against Tether?

Which is the argument that the companies betting against Tether have for saying that Tether pricing should go below the current price of $1?

Resolve the following exercise: Viceroy Research LLC has made a bet against Tether short selling 1,000,000 Tether coins (each $1). It paid a cost of 7% for borrowing the coins to short sale. The price of Tether decreases to $0.75, which is the net profit that Viceroy made in this bet?

Do you think the value of tether will change? Why or why not?