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Last year, you used $15,000 to buy shares in a Canadian corporation. At the time of your investment, the stock sold for C$40/share and the

Last year, you used $15,000 to buy shares in a Canadian corporation. At the time of your investment, the stock sold for C$40/share and the exchange rate was C$ = $1.5. Today, you sold all your shares at the current price of C$45/share. The current exchange rate is C$ = $1.1, which means you received a total of $12,375 from selling your shares. This loss of value is an example of exchange rate risk.

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