Problem
Suppose the treasurer of your company finds out you are enrolled in BUS450 International Finance. Knowing this, your treasurer seeks your advice. Your company has extra cash reserves of $100,000,000 and needs to invest it for 6 months. The treasurer has heard that investing in foreign currencies for the short term might have a higher yield when compared to a short term United States investment. Research the following:
o The US 6 month interest rate
o The 6 month interest rate of a country of your choosing
o The spot exchange rate of your selected currency relative to the US Dollar
o The six-month forward exchange rate per the US Dollar.
Prepare a proposal to your treasurer that outlines your research and recommendation. Provide calculations where necessary to support your recommendation.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.