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Suppose a U.S. investor wishes to invest in a British firm currently selling for 40...

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Accounting

Suppose a U.S. investor wishes to invest in a British firm currently selling for 40 per share. The investor has $12,000 to invest, and the current exchange rate is $2/. Suppose now the investor also sells forward 6,000 at a forward exchange rate of $1.90/. Calculate the dollar-denominated returns for each scenario. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.)

Price per Share () Rate of Return (%) at Given Exchange Rate Exchange Rate:

$1.80 / $2.00 / $2.20

36 / 41 / 46

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