There is an investment in Germany that requires €50,000. The initial exchange rate is 0.9€/$. You will invest there for a year and then exchange your euros for dollars at the end of the year. You expect the exchange rate at the end of the year to be 0.8€/$ and your investment to earn 5% in euros.
 

How many dollars will you need?
What happened to the value of the euro?
What is the expected return to your investment?

Answer rating: 100% (QA)

To calculate the number of dollars needed at the end of the year we need to first calculate the valu... View the full answer