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please answer as soon as possible CATALOGUE - Assume that you have to advice an international investor from Spain. In general, there are three possibilities
please answer as soon as possible
CATALOGUE - Assume that you have to advice an international investor from Spain. In general, there are three possibilities for an portfolio investment. In the eurozone, that means in Spain, the money could be invested with an interest rate of 4 percent. In the US it could be invested with an interest rate of 5 percent. the recent exchange rate is 1.10 USD for 1 euro. The one year forward rate is 1.05. The third possibility is to invest the money in Poland. 1 euro gives you 4.57 zloty at the spot market. The interest rate in Poland is 7 percent. The forward rate is 5.03 zloty per euro. What is your advise? Investment in Spain O Poland USStep by Step Solution
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