Suppose that the treasurer of IBM has an extra cash reserve of $100,000,000 to invest for six months. The interest rate is 10 percent per annum in the United States and 9 percent per annum in Germany. Currently, the spot exchange rate is 1.18 per dollar and the six-month forward exchange rate is 1.16 per dollar. The treasurer of IBM does not wish to bear any exchange risk. Where should he or she invest to maximize the return?