FIN 442 Everbank Assignment 2016

You have $100,000 that you wish to invest
speculatively in a foreign currency for six months. Visit the Everbank.com website (www.everbank.com) or WSJ and select one of
their WorldCurrency CDs as a destination for your deposit.

You are to convert your $100,000 into
units of the selected foreign currency at the spot rate of exchange as of Jan.
20, 2016, the date you are deemed to have made your investment. You will calculate the amount of interest you
will earn in the foreign currency. (If
there is no 6 month rate, use the 3 month rate as if it were the 6 month
rate.) You will convert the total
amount, (principal and interest) back to dollars at the end of 6 months. To do this you will have to make an
assumption about what the exchange rate will be six months from now (a
forecast).

Make a note of the return you would earn
if you had kept your investment in dollars and invested at the dollar rate
Everbank is offering for six month US dollar deposits. That is your benchmark return. You are presumably expecting a higher return
as your reward for taking currency risk.
You will submit the information requested in this paragraph and the
previous one on the due date indicated above.

Below
is a template I suggest that you use.