Question: 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%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!