Required:

Suppose you are a euro$-$based Italian investor, and you are investing $10,800$ to buy shares of a British company at $50$ per share. The

exchange rate is $1\mathrm{.}35$ per pound. The stock pays a $1$ dividend one year later, and you sell your shares for $57.$ The exchange rate has

changed to $1\mathrm{.}40$ per pound at the time of your sale. What is your pound rate of return on this investment and the change in pound$-$

euro exchange rate? What is your euro rate of return? If you had agreed at the outset to sell $8,000$ forward at the rate of $1\mathrm{.}34$ per

pound, what is your euro rate of return on this investment?

Note: Enter your answer as a percent rounded to $2$ decimal places.