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Calculate the euro-based return an Italian investor would have realized by investing 10,000 into a 50 British stock. One year after investment, the stock pays
Calculate the euro-based return an Italian investor would have realized by investing 10,000 into a 50 British stock. One year after investment, the stock pays a 1 dividend, and sells for 54 the exchange rate has changed from 1.25 per pound to 1.30 per pound, although he sold 8,800 forward at the forward rate of 1.28 per pound.
Continue from problem #2. Assuming the same investor sold 10,000 forward at the forward rate of 1.28 per pound (Instead of 8,800). Calculate the return of this Italian investor.
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