The interest rate in great britain is 34 percent per month


The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in the United States is .31 percent per month. The interest rate in Great Britain is .34 percent per month. The spot exchange rate is £.573, and the three-month forward rate is £.575. Ignoring transaction costs, in which country would the treasurer want to invest the company's funds? Why?

Solution Preview :

Prepared by a verified Expert
Finance Basics: The interest rate in great britain is 34 percent per month
Reference No:- TGS02199046

Now Priced at $10 (50% Discount)

Recommended (94%)

Rated (4.6/5)