Exchange rates are an effective way to analyze the price of one currency in terms of another currency with _____________________
1 answer:
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Answer:
Rate of return=0.222=22.2%
Explanation:
Price at which shares are sold=$45 per share
Number of shares=100 shares
Initial margin=50%=0.5
Price of share on repurchase=$40 per share
Required:
Rate of return if shares are repurchased=?
Solution:
Rate of return=
Profit earned=($45-$40)*100
Profit earned=$500
Initial Investment=(100*45)0.5
Initial Investment=$2,250
Rate of return=
Rate of return=0.222=22.2%