Question
The treasurer of a major U.S. firm has $39 million to invest for three months. The annual interest rate in the United States is 0.27
The treasurer of a major U.S. firm has $39 million to invest for three months. The annual interest rate in the United States is 0.27 percent per month. The interest rate in Great Britain is 0.32 percent per month. The spot exchange rate is 0.638, and the three-month forward rate is 0.642. Which country should the firm invest in?
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Handbook Of Corporate Finance Empirical Corporate Finance Volume 1
Authors: B. Espen Eckbo
1st Edition
044453265X, 0080559565, 9780444532657, 9780080559568
