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The treasurer of a major U.S. firm has $23 million to invest for three months. The interest rate in the United States is 63 percent
The treasurer of a major U.S. firm has $23 million to invest for three months. The interest rate in the United States is 63 percent per month. The Interest rate in Great Britain is 07 percent per month The spot exchange rate is 0.53, and the three month forward rate is 0.55. Ignore transaction costs If the treasurer invested the company's funds in the US, what would the value be in three months? If the treasurer invested the company's funds in Great Britain, what would the value be in three months
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