3. In problem 2, suppose that Mr. Silber sold SF4,600, his principal investment amount, forward at the

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3. In problem 2, suppose that Mr. Silber sold SF4,600, his principal investment amount, forward at the forward exchange rate of SF1.62 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? In hindsight, should Mr. Silber have sold the Swiss franc amount forward or not? Why or why not?

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ISE International Financial Management

ISBN: 9781260575316

9th International Edition

Authors: Cheol Eun, Bruce Resnick, Tuugi Chuluun

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