Question: please explain! show calculations without using spreadsheets. 25. Please use the data below, to answer the following question. Interest rate in US (Rh): 3.5% Interest

please explain! show calculations without using spreadsheets.

25. Please use the data below, to answer the following question. Interest rate in US (Rh): 3.5% Interest rate in Euro Zone (Rh): 7.5% Line of credit in USD: USD 20,000,000 Line of credit in EUR: EUR 20,000,000 The current spot rate for EUR (S.): $1.25 The expected spot rate for EUR 1 year later (S1): $1.20 Based on your recommended investment strategy, you should earn a net profit of: a. EUR 62,500 b. USD 800,000 c. EUR 922,500 d. USD 60,000 a

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