Question
You are in the USA, and you buy a UK stock at 75.50. When you buy the stock, the spot exchange rate for the
You are in the USA, and you buy a UK stock at 75.50. When you buy the stock, the spot exchange rate for the GBP = $1.25. Two years later, you sell the stock for 92.40, and the GBP spot rate = $1.10. What was your net gain/loss per share in USD? You are in the USA, and you buy a Japanese stock for 1,850. When you buy the stock, the spot rate for the JPY $0.0086. Two years later, you sell the stock for 1,700, and the JPY spot rate = $0.0098. What was your net gain/loss per share in USD? What would we expect to see happen to US imports of Japanese goods if the Japanese yen appreciates significantly against the US dollar? Why?
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