How much would the investment be worth

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Reference no: EM132032489

The treasurer of a major U.S. firm has $37 million to invest for three months. The interest rate in the United States is .54 percent per month.

The interest rate in Great Britain is .58 percent per month. The spot exchange rate is £.75, and the three-month forward rate is £.76. Ignore transaction costs.

If the treasurer invested the company's funds in the U.S., how much would the investment be worth after three months? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Amount $

If the treasurer invested the company's funds in Great Britain, how much would the investment be worth after three months in U.S. dollars? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Amount $

Reference no: EM132032489

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