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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 0.50/$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 0.50/$1.00 respectively. At selling time, one year after purchase, they were 60 and 0.60/$1.00. If the investor had sold 50,000 forward at the forward exchange rate of 0.55/$1.00, the dollar rate of return would be:
A. 28.00%
B. 9.09%
C. 7.58%
D. -17.42%
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