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Which of the following two statements is true? S1: In a carry trade, a speculator borrows in the low interest rate currency and deposits the
Which of the following two statements is true?
S1: In a carry trade, a speculator borrows in the low interest rate currency and deposits the funds in the high interest rate currency.
S2: In a carry trade, the speculators expected profit increases if the high interest rate currency appreciates against the low interest rate currency.
Both statements are false
Both statements are correct
S2 is correct but S1 is false
S1 is correct and S2 is false
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