Question: Problem 2 1 - 7 Interest Rates and Arbitrage [ LO 2 ] The treasurer of a major U . S . firm has $

Problem 21-7 Interest Rates and Arbitrage [LO2]
The treasurer of a major U.S. firm has $39 million to invest for three months. The interest rate in the United States is 27 percent per month. The interest rate in Great Britain is .32 percent per month. The spot exchange rate is 638, and the three-month forward rate is .642. What would be the value of the investment if the money is invested in the U.S and Great Britain?
Note: Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e.9-1,1,234,567.89.
\table[[U.S.,],[Great Britain,]]
Problem 2 1 - 7 Interest Rates and Arbitrage [ LO

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