Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50 British stock. O
Posted: Sun Apr 10, 2022 8:43 am
Calculate the euro-based return an Italian investor would have
realized by investing €10,000 into a £50 British stock. One year
after investment, the stock has no value since the firm is
bankrupt. Meanwhile the exchange rate has changed from €1.25 per
pound to €1.30 per pound, and he sold £8,000 forward at the forward
rate of €1.28 per pound.
realized by investing €10,000 into a £50 British stock. One year
after investment, the stock has no value since the firm is
bankrupt. Meanwhile the exchange rate has changed from €1.25 per
pound to €1.30 per pound, and he sold £8,000 forward at the forward
rate of €1.28 per pound.