22 Currently, the spot exchange rate is $1.525 and the three-month forward exchange rate is $154 The interest rate is 8 percent per annum in the US and 5.8 percent per annum in the UK. Assume that you can borrow as much as $1520,000 or 1000.000 a. Determine whether interest rate parley is currently holding 3 02:30 Yes NO 21 Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months. The interest rate is 10 percent per annum in the United States and 9 percent per annum in Germany Currently, the spot exchange rate is 108 per dollar and these month forward exchange rate is 106 per dollar. The treasurer of IBM does not wish to bear any exchange risk Where should he or she invest to maximize the return? Better investment 02:00