You have just invested USD 1M in the "carry trade". (you have borrowed USD 1M and you have invested in the NOK). What will be your profit/loss if the exchange rate is NOK 8.4/USD one year from now? enter profits as +, enter losses as -. Spot: NOK 8.0000/USD Forward: NOK 8.2000/USD 12-Month USD Libor: +2.00% 12-Month NOK Libor: +8.00% WACC: 10.00% Call Option: strike price USD 0.125/NOK, premium USD 0.0025/NOK Put Option: strike price USD 0.215/NOK, premium USD 0.0035/NOK

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