Question
(a) Mr. KIA is an investor of Avid International just sold a share of ABM Corporation in Switzerland for SF4,300. The share was bought for
(a) Mr. KIA is an investor of Avid International just sold a share of ABM Corporation in Switzerland for SF4,300. The share was bought for SF5,080 a year ago. The exchange rate currently is SF1.60 per U.S. dollar now and was SF1.78 per dollar a year ago. He received SF120 as a cash dividend immediately before the share was sold. Determine the rate of return that he realizes on this investment in U.S. dollar terms.
(b) Assume that a bank in London quotes USD1.60/GBP and another in New York quotes JPY81.0/USD.
i. Compute the implied JPY/GBP exchange rate in to four decimal points with cross rate.
ii. If you have GBP64,800 now, compute the profit using triangular arbitrage.
PLS SHOW THAT CLEAR CALCULATION METHOD
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Student Worksheets To Ace Accounting Accounting Worksheets To Make Learning And Studying Easier
Authors: Penny Buckley
1st Edition
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