purchase A. BRITISH B. US 3month treasury bill, because it alllows him to earn A. 1.00% B.1.33 % more for the 3 moths.

investment was : A. - 4.97% B. 4.97% C. -2.97% D. 2.97%

would be : A. 1.1 % B. -1.1% C.0.9% D. -0.9 %

On May 17, Peter, a U.S. investor, decided to buy three-month Treasury bills. He found that the per-annum interest rate on three-month Treasury bills is 8.00% in New York and 12.00% in London. Based on this information and assuming that tax costs and other transaction costs are negligible in the two countries, it is in Peter's best interest to