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D Question 19 4 pts Assume that you have invested $100,000 in British equities. When purchased, the stock's price and the exchange rate were 40
D Question 19 4 pts Assume that you have invested $100,000 in British equities. When purchased, the stock's price and the exchange rate were 40 and 0.40/$1.00 respectively. At selling time, one year after purchase, they were 60 and 0.60/$ 1.00. If the investor had sold 40,000 forward at the forward exchange rate of 0.45/$1.00, the dollar rate of return would be: 22.22% O17.09% O 7.58% O 13.90% 4 pts Question 20 Suppose that a U.S-based company exported goods to a Swiss firm and gave the Swiss client a choice of paying either $50,000 or SF 75,000 in three months. The spot exchange rate is $0.63/SF and the three-month forward rate is $0.65/SF. You are the CFO of the U.S. company
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