Hampton uses $100,000 of its own funds and has been pre approved for either 500,000 euros or 500,000 Pounds.
Monthly interest rate for euros = 0.5% and for British pound = 1%
Euro spot rate = $1.20, British pound spot rate = $1.50
Compute the profit for the company in US Dollars if
A. Euro spot rate and Pound spot rate remains the same. i.e after one month, Euro spot rate = $1.20, British pound spot rate = $1.50
B. After one month, Euro spot rate = $1.10, British pound spot rate = $1.50