In November 2014, an American investor buys 1,000 shares in a Mexican company at a price of

Question:

In November 2014, an American investor buys 1,000 shares in a Mexican company at a price of 500 pesos each. The share does not pay any dividend. A year later she sells the shares for 550 pesos each. The exchange rates when she buys the stock are shown in Table 27.1. Suppose that the at the time of sale is 16.5 pesos = $1.
a. How many dollars does she invest?
b. What is her total return in pesos? In dollars?
c. Do you think that she has made an profit or loss? Explain
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...