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Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months. The interest rate is 8 percent per

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Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months. The interest rate is 8 percent per annum in the United States and 7 percent per annum in Germany. Currently, the spot exchange rate is 1.11 per dollar and the six-month forward exchange rate is C1.09 per dollar. The treasurer of IBM does not wish to bear any exchange risk. Where should he or she invest to maximize the return

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