An Australian company is considering a three month short-term investment of 10,000AUD in either Australia or Switzerland....

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An Australian company is considering athree month short-term investment of 10,000AUD in either Australiaor Switzerland. The following information is available
Initial spot exchange rate(AUD/CHF)                     1.0775-1.0825
           Australian three month LIBOR rate (deposit – loan) 4.75-5.25%p.a.
           Swiss three month LIBOR rate (deposit –loan)        2.25-2.75% p.a.
           Australian lending/borrowingspread                         +1.5%p.a.
           Swiss lending/borrowingspread                                +0.5%p.a.
If the ending spot exchange rate(AUD/CHF) is expected to be 1.0875-1.0925, which financing optionshould be taken.
If the ending spot exchange rateturned out to be (AUD/CHF) 1.0675-1.0725, would your decision havebeen profitable.

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An Australian company is considering athree month short-term investment of 10,000AUD in either Australiaor Switzerland. The following information is availableInitial spot exchange rate(AUD/CHF) 1.0775-1.0825 Australian three month LIBOR rate (deposit – loan) 4.75-5.25%p.a. Swiss three month LIBOR rate (deposit –loan) 2.25-2.75% p.a. Australian lending/borrowingspread +1.5%p.a. Swiss lending/borrowingspread +0.5%p.a.If the ending spot exchange rate(AUD/CHF) is expected to be 1.0875-1.0925, which financing optionshould be taken. If the ending spot exchange rateturned out to be (AUD/CHF) 1.0675-1.0725, would your decision havebeen profitable.