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Very Tricky Question. Take time with this one! Assume that you have invested $100,000 in British equities. When purchased the stocks price and the exchange
Very Tricky Question. Take time with this one!
Assume that you have invested $100,000 in British equities. When purchased the stocks price and the exchange rate were 50 euros and o.50euro/$1.00 respectively. At selling time, one year after purchase, they were 45 euro and 0.60euro/$1.00. If the investor has sold 50,000 forward at the forward exchange rate of 0.55 euros/$1.00, the dollar rate of return would be
A. 28.00%
B. -9.09%
C. -17.42%
D. -27.27%
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