Instruction 16.1: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 16.1. 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 exchanges $500,000 at a rate of $1.30/euro, acquiring €384,615 (€500,000 / $1.30).