Question: Use the information below to answer the following question. Exchange Rate Interest Rate APR S 0 ($/) $ 1.45 = 1.00 i $ 4 %

Use the information below to answer the following question.

Exchange Rate Interest Rate APR
S0($/) $ 1.45 = 1.00 i$ 4 %
F360($/) $ 1.48 = 1.00 i 3 %

If you had borrowed $1,000,000 and traded for euro at the spot rate, how many do you receive?

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