The first blank can be answered by U.S or German

The second blank can be answered by 1.33% or 2.00%

THe third blank can be answered by 1.76%, -1.76%, -2.24%, or 2.24%

The fourth blank can be answered by -2.2%, 2.2%, 1.8%, or -1.8%

On June 5, Peter, a U. S. investor, decided to buy six-month Treasury bills. He found the per-annum interest rate that on six-month Treasury bills is 7.00% in New York and 11.00% Frankfurt. Based on this information and assuming that tax costs and other transaction costs are negligible in the two countries, it is in Peter's best interest to purchase _____ six-month Treasury bills, because it allows him to earn ______ more for the six months. On June 5, the spot rate for the euro was $0.820, and the selling price of the six-month forward euro was $0.822. At that time, Peter chose to ignore this difference in exchange rates. In six months, however, the spot rate for the euro to $0.818 per euro. Thus, when Peter converted the investment proceeds back into U.S. dollars, his actual return on investment was _____. As a result of this transaction, Peter realizes that there is great uncertainty about how many dollars he will receive when the Treasury bills mature. he decides to adjust his investment strategy to eliminate this uncertainty. What should Peter's strategy be the next time he considers investing in Treasury bills? contract in the forward market to sell the foreign currency in the amount of the proceeds from the investment Avoid investment in foreign institutions. Exchange half of the anticipated proceeds of the investment for foreign currency. Had Peter used the covered interest arbitrage on June 5, his net return on investment (relative to purchasing the U.S. Treasury bills) in German six-month Treasury bills would be ______