Question: If a U . S . resident buys a Japanese bank stock that subsequently rises in price, while the Japanese currency strengthens relative to the
If a US resident buys a Japanese bank stock that subsequently rises in price, while the Japanese currency strengthens relative to the US currency, which of these situations is most likely to occur when the investor sells the stock at a gain?
A
The net gain will be the same regardless of the currency change.
B
The net gain will be decreased due to the currency change.
C
None of these.
D
The net gain will be increased due to the currency change.
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