Suppose the euro borrowing and lending rates for a German parent and its Spanish affiliate for a 90-day period are as follows:

In each of the following cases, determine the direction funds should flow and the return to the MNC of transferring EUR1,000,000:
a. The German parent has positive funds; the Spanish affiliate has negative funds.
b. The German parent has negative funds; the Spanish affiliate has positive funds.
c. The German parent has positive funds; the Spanish affiliate has positive funds.
d. The German parent has negative funds; the Spanish affiliate has negativefunds.

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Borrowing Rate (in percent per annum) 9.3 9.6 Lending Rate (in percent per annum) 8.1 7.9 Geman parent Spanish affiliate