Suppose the euro borrowing and lending rates for a German parent and its Spanish affiliate for a 90-day period are as follows: In each of the following cases, determine the direction funds should flow...

Suppose the euro borrowing and lending rates for a German parent and its Spanish affiliate for a 90-day period are as follows:

In each of the following cases, determine the direction funds should flow and the return to the MNC of transferring EUR1,000,000:

a. The German parent has positive funds; the Spanish affiliate has negative funds.

b. The German parent has negative funds; the Spanish affiliate has positive funds.

c. The German parent has positive funds; the Spanish affiliate has positive funds.

d. The German parent has negative funds; the Spanish affiliate has negative funds.