Question: How do i solve this? Use the information below to calculate the expected gain or loss on the carry trade strategy for an initial borrowed
Use the information below to calculate the expected gain or loss on the carry trade strategy for an initial borrowed amount of 1.000,000 (you will have to determine the currency of borrowing). Keep at least two decimals in your calculations but round up or down at the end (enter the final answer without decimals). \begin{tabular}{|l|l|} \hline CurrentspotrateofNewZealanddollar(USD/NZD) & 0.58 \\ \hline ExpectedfuturespotrateofNewZealanddollar(USD/NZD)inthreemonths & 0.65 \\ \hline Annualizedthree-monthinterestrateonNZdollars(%) & 1.61 \\ \hline Annualizedthree-monthinterestrateonUSdollars(%) & 0.87 \\ \hline \end{tabular} 123,025 margin of error +/10
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