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Business, 18.03.2021 01:40 zaikam81

A currency speculator expects the spot rate of Euros to change from $1.20 to $0.80 in one year. Assume the speculator has access to credit lines of USD 12,000,000 in the US and EUR 10,000,000 in Europe. The annual borrowing and lending rates are 6 percent in US and 8 percent in Europe. Suppose everyone in the FX market followed the correct speculatulation strategy, then in the FX market the demand schedule for euro will , the supply schedule for euro will , and price of euro will

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