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Currency exchange rates. On the day you arrive in England, the exchange rate for U.S. dollars and British pounds is $1:£0.45. You have $4,400, which you convert to pounds. While you remain in England for the next two weeks, the exchange rate falls to $1:£0.43. As you leave England, you convert the £134 you have left to dollars. How much did you spend in England in U.S. dollars? Did the movement in the exchange rate help or hurt you?

Currency exchange rates. On the day you arrive in England, the exchange rate for U.S. dollars and British pounds is $1:£0.45. You have $4,400, which you convert to pounds. While you remain in England for the next two weeks, the exchange rate falls to $1:£0.43. As you leave England, you convert the £134 you have left to dollars. How much did you spend in England in U.S. dollars? Did the movement in the exchange rate help or hurt you?

International Financial Management
International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter7: International Arbitrage And Interest Rate Parity
Section: Chapter Questions
Problem 34QA
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Currency exchange rates. On the day you arrive in England, the exchange rate for U.S. dollars and British pounds is $1:£0.45. You have $4,400, which you convert to pounds. While you remain in England for the next two weeks, the exchange rate falls to $1:£0.43. As you leave England, you convert the £134 you have left to dollars. How much did you spend in England in U.S. dollars? Did the movement in the exchange rate help or hurt you?
Transcribed Image Text:Currency exchange rates. On the day you arrive in England, the exchange rate for U.S. dollars and British pounds is $1:£0.45. You have $4,400, which you convert to pounds. While you remain in England for the next two weeks, the exchange rate falls to $1:£0.43. As you leave England, you convert the £134 you have left to dollars. How much did you spend in England in U.S. dollars? Did the movement in the exchange rate help or hurt you?
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