A U.S. based investor purchased 100 shares of Brazilian mining giant Vale (VALE) for R$28.98...
70.2K
Verified Solution
Link Copied!
Question
Finance
A U.S. based investor purchased 100 shares of Brazilian mining giant Vale (VALE) for R$28.98 and sold them a year later for R$26.5. At the time of purchase, the Brazilian Real was trading at R$2.341 per U.S. dollar and at the time of the sale of the VALE shares the Brazilian Real was trading at R$2.667 per U.S. dollar. Calculate the U.S. dollar-based percentage return earned by the investor.
ANSWER IS -19.74. Please explain how to find answer in detail.
If the current exchange rate is $1.2,317/, and the annualized six-month money market rate in the Euro zone is 0.71% while the equivalent money market rate in the U.S. is 1.19%, the Direct quote for the six-month EURUSD forward rate (that is, in USD per EUR) should be:
ANSWER IS 1.2346. Please explain how to find answer in detail.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
