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Suppose a U.S. investor wishes to invest in a British firm currently selling for E60 per share. The investor has $6,000 to invest, and
Suppose a U.S. investor wishes to invest in a British firm currently selling for E60 per share. The investor has $6,000 to invest, and the current exchange rate is $2/E. Suppose now the investor also sells forward E3,OOO at a forward exchange rate of $2.10/E. Calculate the dollar-denominated returns for each scenario. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.) Price per Share Exchange Rate: (E) 54 59 64 Answer is not complete. Rate of Return (%) at Given Exchange Rate $1.80/E (19.00)' 0/0 $2.00/E $2.20/E
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