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how much more us dollar can ibm earn Jessica Liew works as the treasurer of IBM Inc. She notices that the company has an extra

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how much more us dollar can ibm earn

Jessica Liew works as the treasurer of IBM Inc. She notices that the company has an extra cash reserve of USD $1,000,000 to invest for six months. The risk-free interest rate is 3 percent per annum in the United States and 4 percent per annum in Germany. Currently, the spot exchange rate EUR/USD is 0.8450 and the six-month forward discount is quoted at 150 pips. Jessica does not wish to bear any interest rate or exchange rate risk. If she decides to invest the cash reserve in risk-free assets in the German market, how much more US dollar can IBM earn than investing in the US market? (Round your answer to integer and do not include the dollar sign ($) or comma (,) between numbers)

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