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The bid & ask rates for Aeroflot are USD 32 USD 35 in the United States and RUR 95 RUR 100 in Russia. The bid
The bid & ask rates for Aeroflot are USD 32 USD 35 in the United States and RUR 95 RUR 100 in Russia. The bid & ask rates for the USD/RUR exchange rate are USD 0.38 USD 0.40. How much would a U.S. investor gain or lose if he or she bought the stock in the United States and sold it in Russia?
The investor would lose USD 4. | ||
The investor would gain USD 1.10. | ||
The investor would lose USD 5.90. | ||
The investor would gain USD 202.5. | ||
None of the answers is correct. |
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