you decide to try the Carry Trade. the one your interest rate in the Eurozone is 8% and 10% in the UK the spot rate is €

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answerhappygod
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you decide to try the Carry Trade. the one your interest rate in the Eurozone is 8% and 10% in the UK the spot rate is €

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you decide to try the Carry Trade. the one your interest rate in the Eurozone is 8% and 10% in the UK the spot rate is €1.15/£. You borrow €3 million for one year if the spot rate in one year is €1.1260/£ what are your prophets/losses.
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