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Suppose that you are the treasurer of 18M with an extra US$1,000,000 to invest for six months. You are considering the purchase of 6-month U.S.

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Suppose that you are the treasurer of 18M with an extra US$1,000,000 to invest for six months. You are considering the purchase of 6-month U.S. T-bilis that yield 1.810% (that's a six month rate). The spot exchange rate is $1.00 - X100, and the six month forward rate is $1.00 - 9110. The 6-month interest rate in Japan is 13 percent. What is your strategy? A. The transit inte ven at the to, vivest in Jean, and repatriate your peneracite doles at the spot rate prevailing in six months Take sim, tanto en at the forward att invest in Japany hedge work in the spot contract cum, into anot the spot, pange with short stions the contract Tim US Tbilis

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