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Problem 25-5 Suppose a U.S. investor wishes to invest in a British firm currently selling for 20 per share. The investor has $13,600 to invest,
Problem 25-5 Suppose a U.S. investor wishes to invest in a British firm currently selling for 20 per share. The investor has $13,600 to invest, and the current exchange rate is $2/. Suppose now the investor also sells forward 6,800 at a forward exchange rate of $1.90/. 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: 16 Rate of Return (%) at Given Exchange Rate $1.80/ $2.00/ $2.20/ % % % % % % % % 21 26 %
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