QUESTION 1 While you were visiting London, you purchased a Jaguar for 35,000, payable in three months. You have enough cash at your bank in New York City, which pays 0.23% interest per month, compounding monthly, to pay for the car. Currently, the GBP/USD is 1.4570 and the three-month forward is 1.4250. In London, the money market interest rate is 1.1% for a three-month investment. You are studying the following payment method: Buy a certain pound amount spot today and invest the amount in the U.K. for three months so that the maturity value becomes equal to 35,000. How much would it cost you in USD? (no cents)

Answer : ___________________