Instruction 16.1:
Use the information to answer following question(s).
In September 2002 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.30/euro. At the end of one year the spot rate is $1.35/euro.
-Refer to Instruction 16.1. How many euros will the U.S. investor acquire with his initial $500,000 investment?
A) euro 650,000
B) euro 370,370
C) euro 500,000
D) euro 384,615

Question

Quizplus · Accepted Answer

The investor exchanges $500,000 at a rate of $1.30/euro, resulting in 500,000 / 1.30 = 384,615 euros.

Instruction 16.1: Use the Information to Answer Following Question(s)