The treasurer of a major U.S. firm has $30 million to invest for three months. The interest
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The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in the United States is .39 percent per month. The interest rate in Great Britain is .41 percent per month. The spot exchange rate is £.7347, and the three-month forward rate is £.7358. Ignoring transaction costs, in which country would the treasurer want to invest the company’s funds? Why?
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If we invest in the US for the next three months we will have 3000000010039 3 ...View the full answer
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Related Book For 
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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