Business
Business, 18.03.2021 01:50, kljjrr

A currency speculator expects the spot rate of British Pounds (GBP) to change from $2.00 to $2.20 in 6-months. Assume the speculator has access to credit lines of USD 20,000,000 in the US and GBP 10,000,000 in UK. The annual borrowing and lending rates are 6 percent in US and 4 percent in UK. In order for the speculator to take advantage from the expected spot rate change in GBP, it should

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A currency speculator expects the spot rate of British Pounds (GBP) to change from $2.00 to $2.20 in...

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