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The treasurer of a major U . S . firm has $ 3 0 million to invest for three months. The interest rate in the

The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in the United States is .15 percent per
month. The interest rate in Great Britain is .26 percent per month. The spot exchange rate is .813, and the three-month forward rate is
.827. Ignore transactions costs.
a. If the treasurer invested the company's funds in the U.S., how much would the investment be worth after three months?
Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal
places, 1,234,567.89.
b. If the treasurer invested the company's funds in Great Britain, how much would the investment be worth after three months?
Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal
places, 1,234,567.89.
a. U.S. investment
b. Great Britain investment
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