Question: Incorrect Question 7 0 / 2 pts Question 7: The one-year interest rates for the USD and the AUD are: USD = 2% and raUD

Incorrect Question 7 0 / 2 pts Question 7: The one-year interest rates for the USD and the AUD are: USD = 2% and raUD = 6%. Assume that Xo USD/AUD = 0.71. Say you borrow 210,000 units of a currency at t = 0, and that the spot rate does not change between t = 0 and t = 1, so X 50/AUD = 0.71; What is your carry trade profit at t = 1? O USD 6,350 O USD 8,400 O USD 3,000 O USD 4,120 Incorrect Question 8 0 / 2 pts Question 8: The one-year interest rates for the USD and the AUD are: rUSD = 6% and rAUD = 4%. Assume that X /D = 0.68 and that the spot rate is consistent with the Uncovered Interest Rate Parity (UIRP) Condition. According to UIRP, what is the expected spot rate at t = 1? O 0.7214 O 0.6931 O 0.7710 0 0.6522

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