Assume that you have invested 100000 in japanese equities


Assume that you have invested $100,000 in Japanese equities. When purchased the stock's price and the exchange rate were ¥100 and ¥100/$1.00 respectively. At selling time, one year after purchase, they were ¥110 and ¥110/$1.00. At the purchase date you had sold ¥10,000,000 forward at the forward exchange rate of ¥108/$1.00. What is your dollar rate of return?

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Financial Management: Assume that you have invested 100000 in japanese equities
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