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Suppose you are a euro - based Italian investor, and you are investing 1 0 , 0 0 0 to buy shares of a British
Suppose you are a eurobased Italian investor, and you are investing to buy shares of a British company at per share. The exchange rate is per pound. The stock pays a dividend one year later, and you sell your shares for The exchange rate has changed to per pound at the time of your sale round your answers to two decimals
a Your pound rate of return on this investment is
b The change in poundeuro exchange rate is
c Your euro rate of return is
d If you had agreed at the outset to sell forward at the rate of your euro rate of return on this investment is
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