In December 2017, an American investor buys 1,000 shares in a Mexican company at a price...

60.1K

Verified Solution

Question

Finance

In December 2017, an American investor buys 1,000 shares in aMexican company at a price of 500 pesos each. The share does notpay any dividend. A year later she sells the shares for 550 pesoseach. Assume the exchange rate when she buys the stock is 19.131.Suppose that the exchange rate at the time of sale is 20 pesos =$1, answer the following requirements.
a. How many dollars does she invest?(Do not round intermediate calculations. Round your answerto 2 decimal places.)
b-1. What is her total return in pesos?(Do not round intermediate calculations. Enter your answeras a percent rounded to 2 decimal places.)
b-2. What is her total return in dollars?(Do not round intermediate calculations. Enter your answeras a percent rounded to 2 decimal places.)
c. Do you think that she has made an exchangerate profit or loss?
a. Dollars invested:
b-1 Total Return %
b-2 Total Retun %
C She has made an exchange rate:

Answer & Explanation Solved by verified expert

4.2 Ratings (532 Votes)

SEE THE See Answer

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!

Become a Member

Transcribed Image Text

In December 2017, an American investor buys 1,000 shares in aMexican company at a price of 500 pesos each. The share does notpay any dividend. A year later she sells the shares for 550 pesoseach. Assume the exchange rate when she buys the stock is 19.131.Suppose that the exchange rate at the time of sale is 20 pesos =$1, answer the following requirements.a. How many dollars does she invest?(Do not round intermediate calculations. Round your answerto 2 decimal places.)b-1. What is her total return in pesos?(Do not round intermediate calculations. Enter your answeras a percent rounded to 2 decimal places.)b-2. What is her total return in dollars?(Do not round intermediate calculations. Enter your answeras a percent rounded to 2 decimal places.)c. Do you think that she has made an exchangerate profit or loss?a.Dollars invested:b-1Total Return%b-2Total Retun%CShe has made an exchange rate:

a.	Dollars invested:
b-1	Total Return	%
b-2	Total Retun	%
C	She has made an exchange rate: