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Question
One year ago, a U.S. investor converted dollars to yen and purchased 100 shares ofNardasausau stock in a Japanese company at a price of 3,150 yen per share. The total
purchasing cost was 315,000 yen. At the time of purchase, in the currency market 1
yen equaled $0.00952. Today, Nardasausau stock is selling at a price of 3,465 yen
per share, and in the currency market $1 equals 130 yen. The stock does not pay a
dividend. If the investor were to sell the stock today and convert the proceeds back to dollars, what would be his realized return on his initial dollar investment from
holding Nardasausau stock?
a. +10.00%
b. -11.12%
c. +12.48%
d. +11.12%
e. -12.48%
Answer
This answer is hidden. It contains 3 characters.
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