The solution converts EUR to USD and then to DRN and invests in the DRN Libor at 2.1%. When they return it back eventually to EUR and netting out the 0.8% EUR borrowing costs, it results in a profit of $1,065.
However, I can generate higher profit by converting EUR to USD and then investing it at the 0.9% USD Libor rate. Conerting it back would gives me a $1,731 profit which is higher however it isn’t one of the choices.
I think i’m Losing it