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Calculate the euro-based return an Italian investor would haverealized by investing €10,000 into a £50 British stock. One yearafter investment, the stock pays a £1 dividend, and sells for £54the exchange rate has changed from €1.25 per pound to €1.30 perpound, although he sold £8,800 forward at the forward rate of €1.28per pound.Return= 28%Continue from problem #2. Assuming the same investor sold£10,000 forward at the forward rate of €1.28 per pound (Instead of£8,800). Calculate the return of this Italian investor.Return=_____%
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