Posted: May 10th, 2021
Recommending a Short Term Foreign Investment [WLOs: 2, 3] [CLOs: 1, 4, 6]
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:
· The US 6 month interest rate
· The 6 month interest rate of a country of your choosing
· The spot exchange rate of your selected currency relative to the US Dollar
· 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. Summarize your findings in a three- to five- page paper, not including title and references pages. Be sure to properly cite your resources using APA style.
Recommending a Short-Term Foreign Investment
International Finance BUS 450
May 9, 2021
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