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ill leave a like! Question 3 2 pts (Similar to Problem 1 at the end of chapter) Suppose that the treasurer of IBM has an
ill leave a like!
Question 3 2 pts (Similar to Problem 1 at the end of chapter) Suppose that the treasurer of IBM has an extra cash reserve of $3.9 million invest for six months. The six-month interest rate is 8.9% per annum in the United States and 8% percent per annum in Germany. Currently, the spot exchange rate is 1.06 per dollar and the six-month forward exchange rate is 0.90 per dollar. If investing in the Germany for six month, how much dollar will IBM will get from this investment six month later? (if your total amount is $1.23 million, please enter 1,230,000. If your total amount is $12.456.78, please just enter 12,456.78) Step by Step Solution
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