1. Suppose that the treasurer of XYZ has an extra cash reserve of 1,000 to invest for a year. The annual interest rate is 3% per annum in the United Kingdom and 4% per annum in Japan. The treasurer of XYZ does not wish to bear any exchange risk and she transacts at the spot rate of 1 = 133.25 and forward rate of 1 = 134.15. Where should she invest to maximize the return and how much pound will she get, round to 2 decimal places?