ins (Yzde 30 ng.) 2020-2021 Bahar Sinav g 1 2 Assume you are the treasurer of Microsoft, and you have an additional $1,000,000 to invest for the next six months. You're thinking of investing in six-month US T-bills with a yield of 1.810 percent. The spot exchange rate is $1.00 = 100, and the six-month forward rate is $1.00 = 110. Alternatively, the six-month interest rate on a comparable risk investment in Japan is 13%. Thus, which one of the following that would be your strategy? 1 10 11 O a. Take $1mn and invest in U.S. T-bills. 19 20 O b. Take $1mn, convert them into yen at the forward rate, invest in Japan, and hedge with a short position on the spot contract. Uygulama O c. Take $1mn, convert them into yen at the spot rate, invest in Japan, and hedge with a short position on the forward contract. Kalan sre O d. Take $1mn, convert them into yen at the spot rate, invest in Japan, and repatriate your yen earnings back into dollars at the spot rate prevailing in six months. Sonraki sayfa