Question: Interest rate in US ( Rh ) : 7 . 5 % Interest rate in Euro Zone ( Rh ) : 3 . 5 %

Interest rate in US (Rh):7.5%Interest rate in Euro Zone (Rh):3.5%Line of credit in USD:USD20,000,000Line of credit in EUR:EUR20,000,000The current spot rate for EUR (So):$1.25The expected spot rate for EUR 1year later (51):$1.30Based on your recommended investment strategy, you should earn a net profit of:O EUR 854,9230 EUR 26,923 USD 28,000 USD 800,000

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