-An Australian Investor Purchases a European-Based Investment at a Price

$\begin{array}{|l|l|l|}\hline & \text { Start of period } & \text { End of period } \\\hline \text { Investment value (USD) } & \$ 1000 & \$ 1200 \\\hline \text { Exchange rate (AUD/USD) } & 1.3500 & 1.3500 \\\hline\end{array}$
-An Australian investor purchases a European-based investment at a price of EUR52.50 when the exchange rate was EUR0.6500/AUD.If the investment is sold for a price of EUR55.00 and the investor's AUD discrete return was 10%,what was the exchange rate when the investment was sold?

A) $0.624$
B) $0.676$
C) $1.538$
D) $1.600$

Correct Answer:

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