If instead of borrowing pounds, I borrow $7.5 million, and then convert first into euro, then...

 

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If instead of borrowing pounds, I borrow $7.5 million, and then convert first into euro, then into pound, and then back into dollar, what will be my profit/loss (ignoring commissions)? If instead, after borrowing the $7.5 million, if I first convert into pound, then into euro, then back into dollar, what will happen? Will I make money in this case If instead of borrowing pounds, I borrow $7.5 million, and then convert first into euro, then into pound, and then back into dollar, what will be my profit/loss (ignoring commissions)? If instead, after borrowing the $7.5 million, if I first convert into pound, then into euro, then back into dollar, what will happen? Will I make money in this case

Answer rating: 100% (QA)

To determine the profitloss in each scenario we need to consider the exchange rates between the US d... View the full answer