The treasurer of a major U$.$S$.$ firm has $$38$ million to invest for three months. The interest

rate in the United States is $32$ percent per month. The interest rate in Great Britain is $0\mathrm{.}5$

percent per month. The spot exchange rate is $0\mathrm{.}52,$ and the three$-$month forward rate is

f$0\mathrm{.}47.$ Ignore transaction costs.

If the treasurer invested the company's funds in the U$.$S$.,$ what would the value be in

three months?

U$.$S$.$

If the treasurer invested the company's funds in Great Britain, what would the value be in

three months?

Great Britain