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Business, 08.02.2021 20:20 proutyhaylee

Suppose that the treasurer of IBM has an extra cash reserve of $10,000,000 to invest for three months. The three-month interest rate is 4 percent per annum in the United States and 6 percent per annum in Germany. Currently, the spot exchange rate is $1.44 per euro and the three-month forward exchange rate is $1.40 per euro. The treasurer of IBM does not wish to bear any exchange risk. Where should he/she invest to maximize the return

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Suppose that the treasurer of IBM has an extra cash reserve of $10,000,000 to invest for three month...
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