Problemthe treasurer of a major us firm has 38 million to, Ask an Expert

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Problem:

The treasurer of a major U.S. firm has $38 million to invest for three months. The interest rate in the United States is 0.26 percent per month. The interest rate in Great Britain is 0.32 percent per month. The spot exchange rate is £0.637, and the three-month forward rate is £0.641.

Required:

Question: What would be the value of the investment if the money is invested in U.S and Great Britain?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162608

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