Talisman Energy is an oil exploration and production company headquartered in Calgary that trades on the New York Stock Exchange. At time of purchase by a Canadian investor the stock's price and the exchange rate were US$10 and US$0.64/C$1.00 respectively. One year later, the investor sold the shares for US$9.50 and the exchange rate was US$0.70/C$1.00.
-If the investor had sold US$5,half of the principal investment amount at the same time that the stock was purchased,forward at the forward exchange rate of US$0.64/C$1.00,the dollar rate of return would be: (Round final percentage answer to 2 decimal places,and do not round intermediate calculations.)

Question

Quizplus · Accepted Answer

Purchase price in Canadian dollars: US$10/US$0.64/C$ = C$15.63Sale price in Canadian dollars: US$5/US$0.64/C$ + US$4.5/US$0.7/C$ = C$14.24Return: (C$14.24 _- C$15.63)/C$15.63*100% = -8.86%

Talisman Energy Is an Oil Exploration and Production Company Headquartered