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What Is the Maximum Net Profit to a Speculator with $1

Question 45

Multiple Choice

What is the maximum net profit to a speculator with $1 million if interest rates on 1-year Treasuries are 6% in France,4% in the United States and the exchange rate is expected to change from today's rate of 2Fr/$ to 2.1Fr/$ in 1 year?


A) $1,060,000
B) $1,005,683
C) $1,040,000
D) $1,050,000
E) $1,009,524

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