Question
A U.S. company is considering investing $5 million in excess cashin Argentina at an annual interest rate of 65 percent.The U.S. interest rate is 7
A U.S. company is considering investing $5 million in excess cashin Argentina at an annual interest rate of 65 percent.The U.S. interest rate is 7 percent.(1) By how much would the Argentine peso have to depreciate to cause such a strategy to backfire?(2) What other factors should the U.S. company consider before making such an investment?
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
