A. VI00.58B. V98.55C. VI01.68D. 497.42E. V103.50An investor starts with $1 million and converts it to 0.75 million pounds, which is theninvested for one year. In a year the investor has 0.7795 million pounds, which she thenconverts to dollars at an exchange rate of O.72 pounds per dollar. The US. dollar anualrate of return camod was15.A. 4.97 percentB. 5.27 percentC. 6.45 percentD. 7.69 percentE. 8.26 percent16. An increase in which of the following would increase the price of a call opion on commestock, all else equal?

Question
Asked Nov 1, 2019
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A. VI00.58
B. V98.55
C. VI01.68
D. 497.42
E. V103.50
An investor starts with $1 million and converts it to 0.75 million pounds, which is then
invested for one year. In a year the investor has 0.7795 million pounds, which she then
converts to dollars at an exchange rate of O.72 pounds per dollar. The US. dollar anual
rate of return camod was
15.
A. 4.97 percent
B. 5.27 percent
C. 6.45 percent
D. 7.69 percent
E. 8.26 percent
16. An increase in which of the following would increase the price of a call opion on comme
stock, all else equal?
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A. VI00.58 B. V98.55 C. VI01.68 D. 497.42 E. V103.50 An investor starts with $1 million and converts it to 0.75 million pounds, which is then invested for one year. In a year the investor has 0.7795 million pounds, which she then converts to dollars at an exchange rate of O.72 pounds per dollar. The US. dollar anual rate of return camod was 15. A. 4.97 percent B. 5.27 percent C. 6.45 percent D. 7.69 percent E. 8.26 percent 16. An increase in which of the following would increase the price of a call opion on comme stock, all else equal?

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Expert Answer

Step 1

Calculate the end-dollar amount by Converting 0.7795 million pounds into dollars using exchange rate of 0.72 pound per dollar as follows:

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0.72 pounds $1 1 1 pound 0.72 1 0.7795 million pounds -x 0.779 5 million pounds 0.72 =$1.0826 million

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Step 2

The end dollar amount is $1.0826 million.

Step 3

Calculate the U.S. dollar annual ...

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End dollar amount - Start dollar amount -x100 Annual rate of return Start dollar amount $1.0826 million-$1 million x 100 $1 million 8.26%

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