How would you lose money on trade

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Reference no: EM131923887

Suppose the 1 year interest rate is 1% in Switzerland and 3% in the Euro area, and the EURCHF spot rate is 1.08 (1 EUR = 1.08 CHF). You think that the Swiss Franc will weaken against the Euro in the coming year. If you have EUR 1,000,000, what trade might you put if you are confident of your view? How would you lose money on the trade?

Reference no: EM131923887

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