Consider this interview question:
Tell me how you'd construct a risk neutral cross country trade on the 2 year – 10 year interest rate spread in Germany and the U.S.
What does "risk neutral" mean in this context? It surely can't mean "indifferent to risk" in the context of derivatives pricing.
How would you answer the interview question? I thought of trading interest rate swaps, but they only work for one currency, unless I'm mistaken.