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Suppose the following exchange rate quotes for the Turkish Lira (TRY) against the U.S. dollar (ignore bid/ask spreads here), and for the returns on an

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Suppose the following exchange rate quotes for the Turkish Lira (TRY) against the U.S. dollar (ignore bid/ask spreads here), and for the returns on an asset in Turkey and in the U.S: Spot exchange rate = Spot (#TRY/1USD)= TRY 6.9500/USD 180-day forward exchange rate = F180 (#TRY/1USD): TRY 7.5150/USD Interest rate on a 180-day asset in Turkey (quoted on an annualized basis) = 16.50% Interest rate on a 180-day asset in the U.S. (quoted on an annualized basis) = 0.50% If a U.S. investor investor has $1 million to invest in either the U.S. asset or the Turkish asset over the next 180 days, which would they choose and why? (explain, showing your work)

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