Question 1 You (Pakistani investor) buy one U.S. Stock (Amazon) on 1 Jan 2019. On 1 Jan 2019, the spot exchange rate was PKR 155 / USD and the price of Amazon was USD 1,500. The one year forward exchange rate was PKR 162 / USD. You sell the share the on 31 Dec 2019 when the Amazon share price was USD 1,875 and the spot exchange rate was PKR 168 / USD. What are your hedged and unhedged cash-flows and return for the period? What will the hedged and unhedged cash-flows and return be if the spot exchange rate on 31 Dec 2019 was PKR 150 / USD