Suppose a U.S. investor wishes to invest in a British firm currently selling for £40 per share. The investor has $10,000 to invest, and the current exchange rate is $2 per £. Suppose now the investor also sells forward £5,000 at a forward exchange rate of $2.10 per £. Required: Calculate the dollar-denominated returns for each scenario. Note: Round your percentage answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Price per Share (£) Rate of Return (%) at Given Exchange Rate Exchange Rate $1.80 per ₤ $2.00 per ₤ $2.20 per £ £ 41 35 % % % £ 42 40 % % כי £ 45 % % di di %

A Framework for decision making: a. can help reduce the unexpected consequences of our actions. b. is not needed if the activity is legal. c. helps identify who gains the most from a decision.

the answer provided does not support the question. which makes the answer incorrect.

What is underpricing? Why is it used? What evidence do we have to support the belief that underpricing is a regular problem?

1

do you not see the solution you provided is the exact one i submitted, it says it's wrong..

It says they answers are wrong from your example.