Question
4 months ago, Mario (an Italian investor) invested 25,000 to buy AAPL stock @ 160 per share. Exchange rate (XR) was 1.25/$. Today, he sold
4 months ago, Mario (an Italian investor) invested €25,000 to buy AAPL stock @ 160 per share. Exchange rate (XR) was €1.25/$. Today, he sold the shares for $140 per share (XR now is €1.55/$).
Calculate the profit/loss from this investment in euro terms.
Second, compute the rate of return on your investment in euro terms.
How much of the return is due to the exchange rate movement?
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SOLUTION To calculate the profitloss from this investment in euro terms we need to convert the dolla...
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Canadian Income Taxation Planning And Decision Making
Authors: Joan Kitunen, William Buckwold
17th Edition 2014-2015 Version
1259094332, 978-1259094330
