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Suppose a U

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Suppose a U.S. investor wishes to invest in a British firm currently selling for £80 per share. The investor has $16,000 to invest, and the current exchange rate is $2/£.

Suppose now the investor also sells forward £8,000 at a forward exchange rate of $1.90/£.

Calculate the dollar-denominated returns for each scenario. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.)

Price per share    Exchange Rate   Rate of return at  Given Exchange Rate 
 (£)                                                       $1.80/£        $2.00/£       $2.20/£

£72

£77

£82