The treasurer of a major U$.$S$.$ firm has $$40$ million to invest for three months. The interest rate in the United States is $\mathrm{.}3$5 percent per month. The interest rate in Great Britain is $\mathrm{.}51$ percent per month. The spot exchange rate is $\pounds \mathrm{.}7367,$ and the three$-$month forward rate is $\pounds \mathrm{.}7360.$ Ignoring transaction costs, in which country would the treasurer want to invest the company$’$s funds? Why?

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