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You decide to try the carry trade. The one-year interest rate in the UK is 4% and it is 6% in the euro zone. The

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You decide to try the carry trade. The one-year interest rate in the UK is 4% and it is 6% in the euro zone. The spot rate is 1.129/ and the one-year forward rate is 1.132/. What are your profits if you can borrow 5 million or 5 million for one year and the spot rate in one year is 1.071/ ? 172,276 margin of error +1.5

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