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51 Week 5 Mid-Term Exam Your U.S. company has $5,000,000 to be invested for the...

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51 Week 5 Mid-Term Exam Your U.S. company has $5,000,000 to be invested for the next 120 days. Using only the data given below, answer the following questions. (a and b). 1.50% U.S. interest rate (annual): Brazil interest rate (annual) 1.50% Spot rate: 120 day forward rate: 1 Brazilian Real equals 0.203236 U.S. Dollar 1 Brazilian Real equals 0.203400 U.S. Dollar Your forecast of the spot rate In 120 days 1 Brazilian Real equals 0.203000 U.S. Dollar a) 15 points in which country would you invest the $5,000,000 if you had the ability to use the forward market? (7.5 points) What total amount (in dollars) would you obtain at the end of 120 days? (75 points) Show the necessary calculations What total amount (in dollars) would you obtain at the end of 120 days? (7.5 points) Show the necessary calculations. b.) 15 points in which country would you invest the $5,000,000 if you had 100% certainty that your forecast would come true? (25 points) What total amount (in dollars) would you obtain at the end of 120 days? (75 points) Show the necessary calculations

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