Answer Happy

Clayton Moore's Money Fund. Clayton Moore is the manager of an international money market fund managed out of London. Unlike many money funds that guarantee their investors a near risk-free investment with variable interest earnings, Clayton Moore's fund is a very aggressive fund that searches out relatively high-interest earnings around the globe, but at some risk. The fund is pound-denominated. Clayton is currently evaluating a rather interesting opportunity in Malaysia. Since the Asian Crisis of 1997, the Malaysian government enforced a number of currency and capital restrictions to protect and preserve the value of the Malaysian ringgit. The ringgit was fixed to the U.S. dollar at RM3.80/$ for seven years. In 2005, the Malaysian government allowed the currency to float against several major currencies. The current spot rate today is RM3.13483/$. Local currency time deposits of 180-day maturities are earning 8.901% per annum. The London eurocurrency market for pounds is yielding 4.202% per annum on similar 180-day maturities. The current spot rate on the British pound is $1.5822/£, and the 180-day forward rate is $1.5556/£. The initial investment is £1,150,000.00. The investment proceeds from the initial investment is £ (Round to two decimal places.)