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