A Good Time for an American to Hold German Stocks

A good time for an American to hold German stocks, ceteris paribus, is when the

A) Euro is stable compared to the U.S.dollar.
B) U.S.dollar depreciates in value compared to the euro.
C) U.S.dollar appreciates in value compared to the euro.
D) The return in the German stock market has no relationship to the value of the dollar compared to the euro.Everything else constant, it is a good time for an American to hold German stocks when the dollar is depreciated relative to the euro because the American investor will hold wealth in an appreciated currency, the euro.Whenever one currency depreciates, another currency must appreciate.