14. (Return calculation) On 1 January 2010, an American investor bought $1,000,000 worth of Swiss francs (SFr)
Question:
14. (Return calculation) On 1 January 2010, an American investor bought
$1,000,000 worth of Swiss francs (SFr) and put it in a savings account for 1 year. The annual interest rate in Swiss francs was 6%. During that period, the interest rate in the United States was 2%. On the purchase date, the exchange rate was $1 = 1.56 SFr.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Principles Of Finance With Excel
ISBN: 9780190296384
3rd Edition
Authors: Simon Benninga, Tal Mofkadi
Question Posted: