An analysis of profits in the carry trade revealed a predictable profit (+)/loss (-) of:
A) +25%.
B) +0.08%.
C) -0.02%.
D) -0.2%.

Question

Quizplus · Accepted Answer

The carry trade has a very small and predictable profit margin, usually around 0.5-1% per year. However, due to changes in exchange rates, there is always a risk that the trade may result in a loss. According to studies, the actual profit margin fluctuates between -0.02% and +0.08%, with an average profit of around 0.01%. Therefore, the best choice is B, which is the closest to the average profit margin.

An Analysis of Profits in the Carry Trade Revealed a Predictable