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Assume that you have invested $100,000 in British equities. When purchased, the stock's price and the exchange rate were 50 and 0.75/$1.00 respectively. At selling
Assume that you have invested $100,000 in British equities. When purchased, the stock's price and the exchange rate were 50 and 0.75/$1.00 respectively. At selling time, one year after purchase, they were 60 and 0.80/$1.00. If the investor had sold 50,000 forward at the forward exchange rate of 0.70/$1.00. What would the dollar rate of return be?
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