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 13.1. How many euros will the U. S. investor acquire with his initial $500,000 investment?

Question

Guest

Business

6 August, 00:02

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 13.1. How many euros will the U. S. investor acquire with his initial $500,000 investment?

+5

Answers (1)

Know the Answer?

Anderson · Answer 1

Euro 370,370.37

Explanation:

The amount of Euros he will be able to acquire at the end of the year is equal to

Amount to invest / spot rate at the date

At the current spot rate of $1.35/euro

Euros to acquire = 500,000/1.35

= Euro 370,370.37