Question
In July 2020, an American investor buys 1,220 shares in a Mexican company at a price of 522 pesos each. The share does not pay
In July 2020, an American investor buys 1,220 shares in a Mexican company at a price of 522 pesos each. The share does not pay any dividend. A year later, she sells the shares for 572 pesos each. Assume the exchange rate when she buys the stock is 22.2949. Suppose that the exchange rate at the time of sale is USD/MXN = 25.0000. Answer the following requirements.
a. How many dollars does she invest?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b-1. What is her total return in pesos?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
b-2. What is her total return in dollars?
Note: A negative answer should be indicated with a negative sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
c. Do you think that she has made an exchange rate profit or loss?
In July 2020 , an American investor buys 1,220 shares in a Mexican company at a price of 522 pesos each. The share does not pay any dividend. A year later, she sells the shares for 572 pesos each. Assume the exchange rate when she buys the stock is 22.2949 . Suppose that the exchange rate at the time of sale is USD/MXN =25.0000. Answer the following requirements. a. How many dollars does she invest? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b-1. What is her total return in pesos? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b-2. What is her total return in dollars? Note: A negative answer should be indicated with a negative sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. c. Do you think that she has made an exchange rate profit or loss
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