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Level II
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Economics
Economics
Medium
Cascadia FX Fund borrows CHF 10 million at 1.0% and invests in BRL-denominated deposits at 11.5%. The CHF/BRL spot rate is 0.18 (CHF per BRL). After one year, the CHF/BRL rate is 0.165. The carry trade return in CHF terms is closest to:
A
+2.17%
B
+10.50%
C
-8.33%
D
+18.83%
Select an answer to continue
Tags
#carry-trade
#fx-return
#interest-rate-differential
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