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You believe the Naira will appreciate over the next 6 months from N80.00/C to N72.00/C. The following annual interest rates apply: i. If you have

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You believe the Naira will appreciate over the next 6 months from N80.00/C to N72.00/C. The following annual interest rates apply: i. If you have the capacity to borrow either N80 million or C1million, would you borrow naira to invest in cedis, or borrow cedis to invest in naira? ii. In making a choice after your analysis in part (i) above, what additional factors would you take into consideration, and why? (16 marks) Part B Compare and contrast a currency forward contract and a currency futures contract

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