27. A US 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 US dollars to Singapore dollars, it can earn 1.5 percent on a Singapore deposit for 45 days. The spot rate of the Singapore dollar is US$0.50. The spot rate 45 days from now is expected to be US$0.40. Should this company invest its cash in the United States or in Singapore?

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asked 12 years ago in Economics by anonymous

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asked 12 years ago in Economics by anonymous