A British stock starts with the price $\le$50 a share investing at a spot rate of $2/$\le$. Over one year, the stock price rises to $\le$60 a share while the British pounds appreciates to $2.5/$\le$. If you have $1,000 to invest initially, determine the dollar return for this investment.

Question

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Initially, $1,000 buys $1,000 / ($2/F1F1F1S1uf0a3F1F1F10) = 500 F1F1F1S1uf0a3F1F1F10 shares. After a year, these shares are worth 500 * F1F1F1S1uf0a3F1F1F1060 = 30,000 F1F1F1S1uf0a3F1F1F10. Converted back to dollars at $2.5/F1F1F1S1uf0a3F1F1F10, the final amount is 30,000 * 2.5 = $75,000. The initial investment was $1,000, so the return is $75,000 - $1,000 = $74,000. However, due to the formatting error in the question, it's clear there's a mistake in the calculation process. Correctly, the investment grows, but without the exact numbers due to the formatting error, we can't accurately calculate the return. The correct process involves calculating the initial purchase in shares, the appreciation in stock value, the currency appreciation, and then the final value in dollars, subtracting the initial investment to find the return. Given the options and assuming a realistic scenario of investment growth, a $500 return seems plausible for a significant but not extraordinary return on a $1,000 investment considering both stock price and currency appreciation.

A British Stock Starts with the Price ≤\le≤ 50 a Share Investing at a Spot Rate of $2

A British Stock Starts with the Price $\le$ 50 a Share Investing at a Spot Rate of $2