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Future value of euro will be calculated by future value formula. Future value = Present value*(1+r)n…

If the exchange rate at time t is Et = €1/$. You invest $1 in an euro asset at t, which has an interest of 8%. When the asset expires at t+1, you get paid € round to two decimal places). If dollar appreciates by 2 % against euro, that is, Et+1 %D (х. /$(x.xx round to two decimal places), then you can buy back $ (x.xx round UP to two decimal places). Your rate of return in terms of $ is (round to the nearest integer). Blank # 1 Blank # 2 Blank # 3 Blank # 4

If the exchange rate at time t is Et = €1/$. You invest $1 in an euro asset at t, which has an interest of 8%. When the asset expires at t+1, you get paid € round to two decimal places). If dollar appreciates by 2 % against euro, that is, Et+1 %D (х. /$(x.xx round to two decimal places), then you can buy back $ (x.xx round UP to two decimal places). Your rate of return in terms of $ is (round to the nearest integer). Blank # 1 Blank # 2 Blank # 3 Blank # 4

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 4P: If euros sell for 1.50 (U.S.) per euro, what should dollars sell for in euros per dollar?

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