Suppose that California Co., a U.S. based MNC, seeks to capitalize a difference in interest rates between euros and British pounds via the use of a carry trade. In particular, after 1 month, funds invested in euros will yield a 0.50% percent return, funds invested in pounds will yield a return of 2.00% percent. Currently the spot rate of the British pound is $1.00 whlle the spot fate of the euro is $0.80. In other words, the pound is worth 1.25 euros. Calfornia Co. expects these spot rates to remain constant over the next month. If California Co. takes $200,000 of its own funds and converts them to pounds it would have pounds. If California Co. borrows 600,000 euron and converts them to pounds, it will have pounds