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Suppose the treasurerof your company finds out you are enrolled in InternationalFinance. Knowing this, yourtreasurer seeks your advice. Your company has extra cash reserves of

Suppose the treasurerof your company finds out you are enrolled in InternationalFinance. Knowing this, yourtreasurer seeks your advice. Your company has extra cash reserves of $100,000,000 andneedsto invest it for 6 months.The treasurerhas heard that investing in foreigncurrenciesfor the short term mighthave a higher yield when compared to ashort term United States investment.Research the following:

  • The US 6month interest rate
  • The 6month interest rate of a country of yourchoosing
  • Thespotexchangerate of your selected currency relative totheUS Dollar
  • The six-month forward exchangerateper the US Dollar.

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