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The one-year interest rate abroad is as high as 5%, while it is only 1.5% in Norway. You have just inherited NOK 630,000 which you
The one-year interest rate abroad is as high as 5%, while it is only 1.5% in Norway. You have just inherited NOK 630,000 which you want to invest abroad to get a higher return. Today's spot price sNOK / UTL is 4.20. You expect that this spot price in one year will be 4.10.
Calculate the value of your inheritance in one year if you invest the money in Norway and if you invest the money abroad. Assume that the spot price will be 4.10 in one year. Has it been most profitable to invest in Norway or abroad? Explain briefly why.
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