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Calculate the dollar-denominated returns

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Reference no: EM132823522

Suppose a U.S. investor wishes to invest in a British firm currently selling for £90 per share. The investor has $36,000 to invest, and the current exchange rate is $2/£.

Problem 1: Suppose now the investor also sells forward £18,000 at a forward exchange rate of $1.95/£. Calculate the dollar-denominated returns

Reference no: EM132823522

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