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Suppose a U.S. investor wishes to invest in a British firm currently selling for 34 per share. The investor has $6,800 to invest, and
Suppose a U.S. investor wishes to invest in a British firm currently selling for 34 per share. The investor has $6,800 to invest, and the current exchange rate is $2/. Suppose now the investor also sells forward 3,400 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 Rate of Return (%) at Given Exchange Rate Share () Exchange Rate: $1.80/ $2.00/ $2.20/ 30 % % % 255 255 35 % % % 10 40 % % %
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