Currency Spot rate Forward rate (5 year) USD/EUR 0.95 0.9043 USD/GBP 0.82 0.7615 USD/INR 66.66 84.6805 USD/AUD 1.33 1.33 USD/CAD 1.35 1.3834 USD/MXN 19.79 20.7594 USD/AED 3.67 4.8841 USD/JPY 114.76...


You are an investor currently holding 1.5 million U.S. dollars, and you are contemplating the following strategy.


A)Investing in the U.S. 5-year treasury bonds.


1.Find the most profitable strategy. Calculate the future and present values of all strategies.


Pls help!



Currency<br>Spot rate<br>Forward rate (5 year)<br>USD/EUR<br>0.95<br>0.9043<br>USD/GBP<br>0.82<br>0.7615<br>USD/INR<br>66.66<br>84.6805<br>USD/AUD<br>1.33<br>1.33<br>USD/CAD<br>1.35<br>1.3834<br>USD/MXN<br>19.79<br>20.7594<br>USD/AED<br>3.67<br>4.8841<br>USD/JPY<br>114.76<br>106.5663<br>USD/CNY<br>6.91<br>7.6145<br>USD risk free interest rate (annual rate, 5 year government bonds)<br>2.00%<br>EUR risk free interest rate (annual rate, 5 year government bonds)<br>1.00%<br>GBP risk free interest rate (annual rate, 5 year government bonds)<br>0.50%<br>INR risk free interest rate (annual rate, 5 year government bonds)<br>7.00%<br>AUD risk free interest rate (annual rate, 5 year government bonds) 2.00%<br>CAD risk free interest rate (annual rate, 5 year government bonds)<br>2.50%<br>MXN risk free interest rate (annual rate, 5 year government bonds) 5.00%<br>AED risk free interest rate (annual rate, 5 year government bonds)<br>8.00%<br>JPY risk free interest rate (annual rate, 5 year government bonds)<br>0.50%<br>CNY risk free interest rate (annual rate, 5 year government bonds)<br>4.00%<br>

Extracted text: Currency Spot rate Forward rate (5 year) USD/EUR 0.95 0.9043 USD/GBP 0.82 0.7615 USD/INR 66.66 84.6805 USD/AUD 1.33 1.33 USD/CAD 1.35 1.3834 USD/MXN 19.79 20.7594 USD/AED 3.67 4.8841 USD/JPY 114.76 106.5663 USD/CNY 6.91 7.6145 USD risk free interest rate (annual rate, 5 year government bonds) 2.00% EUR risk free interest rate (annual rate, 5 year government bonds) 1.00% GBP risk free interest rate (annual rate, 5 year government bonds) 0.50% INR risk free interest rate (annual rate, 5 year government bonds) 7.00% AUD risk free interest rate (annual rate, 5 year government bonds) 2.00% CAD risk free interest rate (annual rate, 5 year government bonds) 2.50% MXN risk free interest rate (annual rate, 5 year government bonds) 5.00% AED risk free interest rate (annual rate, 5 year government bonds) 8.00% JPY risk free interest rate (annual rate, 5 year government bonds) 0.50% CNY risk free interest rate (annual rate, 5 year government bonds) 4.00%

Jun 11, 2022
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