As portfolio manager of an international money market fund based in London, you seek high-interest earnings throughout the world for an aggressive fund that appeals to risk-neutral investors. Today, you seek to invest GBP 1,000,000 either at home or in the Ukraine. At present, the Ukrainian Hrywnja (UAH) is pegged to the U.S. dollar (USD) at UAH 3.1384/$1 and is not exchangeable for the GBP. Ukrainian time deposits maturing in 180 days yield 8.9% per annum, and those in the UK earn 4.2% per annum over the same time period. The current spot exchange rate is $1.582/GBP, and the 180-day forward rate is $1.5561/GBP. Given your investors risk preferences, should you invest at home or in the Ukraine (assume 360 days in one year, and zero transactions costs)? Is there any exchange rate risk if you choose the latter (Ukraine) investment? If, so explain its source.