How would you lose money on the trade

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1. 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?

2. Which of the following examples of business use property is not eligible for section 1231 treatment when sold at a gain? Sale of land held for three years; net gain from a casualty gain on a dump truck held for two years; sale of a leasehold held for more than a year; sale of dairy cattle held for 14 months.

Reference no: EM131918188

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