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Assume that you have invested $100,000 in Japanese equities. When purchased the stock's price and the exchange rate were 100 and 100/$1.00 respectively. At selling
Assume that you have invested $100,000 in Japanese equities. When purchased the stock's price and the exchange rate were 100 and 100/$1.00 respectively. At selling time, one year after purchase, they were 110 and 110/$1.00. If the investor had sold 10,000,000 forward at the forward exchange rate of 105/$1.00 the dollar rate of return would be:
A)-9.09%
B)4.76%
C)28.00%
D)-27.27%
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