A U.S. COMPANY HAS $10,000 IN CASH AVAILABLE FOR 45 DAYS. IT CAN...

208. - BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
BT THANH TOAN QUOC TE MULTINATIONAL FINANCIAL MANAGEMENT DAP AN
208. A U.S. company has $10,000 in cash available for 45 days. It can earn 1 percent on 45-day investment in the United States. Alternatively, if it converts the dollars to German marks, it can earn 1.5 percent on a German deposit for 45 days. The spot rate of the German mark is $0.50. The spot rate 45 days from now is expected to be $0.40. Should this company invest its cash in the United States or in Germany? a. In the United States b. In the Germany c. It does not make any difference d. All of the above e. None of the above