Essay
Meagan is considering investing $1000 in Canada,where she expects an interest rate of 4 percent,or in the U.K.,where the expected interest rate would be 6 percent.The current exchange rate is 0.6 £ / $,which could take by the end of the year any value between 0.4 and 0.7£ / $ with equal probability.What should Meagan do?
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Meagan would have $1000(1 + 0.04)= $1040...View Answer
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