13. Currency risk (S28.3) In July 2020, an American investor buys 1,000 shares in a Mexican company...

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13. Currency risk (S28.3) In July 2020, 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 28.1. Suppose that the exchange rate at the time of sale is USD/MXN = 25.

a. How many dollars does she invest?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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