A French institutional investor wishes to decrease its exposure to Taiwan. It is interested in selling 20,000

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A French institutional investor wishes to decrease its exposure to Taiwan. It is interested in selling 20,000 shares of a particular Taiwanese firm that is currently in its portfolio. This firm trades on the Taiwan Stock Exchange. A Taiwan-based broker quotes the Taiwan dollar (TW$) price of the shares of this firm as 150.35-150.75, with a commission of 0.10 percent of the transaction value. The Taiwan Stock Exchange charges a tax of 0.30 percent of the value traded from the seller. A bank is quoting the TW$ to € exchange rate as 32.8675-32.8800. How many euros will the French institutional investor receive on selling the shares?
Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Global Investments

ISBN: 978-0321527707

6th edition

Authors: Bruno Solnik, Dennis McLeavey

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