Your U.S. company has $5,000,000 to be invested for the next 120 days. Using only...
90.2K
Verified Solution
Link Copied!
Question
Finance
Your U.S. company has $5,000,000 to be invested for the next 120 days. Using only the data given below, answer the following questions, (a and b), 1.50% U.S. interest rate (annual): Brazil interest rate (annual): 1.50% Spot rate: 120 day forward rate: 1 Brazilian Real equals 0.203236 U.S. Dollar 1 Brazilian Real equals 0.203400 U.S. Dollar Your forecast of the spot rate In 120 days 1 Brazilian Real equals 0203000 US Dollar a.) 15 points in which country would you invest the $5,000,000 if you had the ability to use the forward market? (75 points) What total amount (in dollars) would you obtain at the end of 120 days? (7.5 points) silow the necessary calculations. b.) 15 points In which country would you invest the $5,000,000 if you had 100% certainty that your forecast would come true? (7.5 points) What total amount (in dollars) would you obtain at the end of 120 days? (7.5 points) Show the necessary calculations
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
