Question
Ian McKenzie, an avid international investor, just sold a share of Nestle, a Swiss firm, for SFR 5,000. The share was bought for SFR 4,000
Ian McKenzie, an avid international investor, just sold a share of Nestle, a Swiss firm, for SFR 5,000. The share was bought for SFR 4,000 a year ago. The exchange rate is now SFR 1.50 / USD and was SFR 1.00 / USD a year ago. Mr. McKenzie received SFR 750 as a cash dividend immediately before the share was sold. Suppose when he made the investment, Mr. McKenzi sold SFR 5,000 forward at the forward exchange rate of SFR 1.25 / USD. What is the amount of profit in USD on this investment?
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Fundamentals Of Financial Management
Authors: James C Van Horne
3rd Edition
0133393410, 978-0133393415
