Seudónimo Seudónimo

06-06-2023
Business

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Assume that you can borrow 200,000 EUR from Germany at 0.5% and invest in New Zealand at 1.5%. Today, the spot NZD/EUR=0.61. You expect the future spot NZD/EUR to be 0.62 in 1 year. Compute your expected profit/loss with a carry trade

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