Use the information to answer the following question(s).
In September 2009 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 17.1. How many euros will the U.S. investor acquire with his initial $500,000 investment?
A)€650,000
B)€370,370
C)€500,000
D)€384,615

Question

Quizplus · Accepted Answer

The investor will acquire euros by dividing the dollar amount by the spot rate: $500,000 / $1.30/euro = €384,615.

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