Instruction 13.1: Use the Information to Answer the Following Question(s)

question 69

Multiple Choice

Instruction 13.1:
Use the information to answer the following question(s) .
In September 2009 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.30/euro. At the end of one year the spot rate is $1.35/euro.
-Refer to Instruction 13.1. How many euros will the U.S. investor acquire with his initial $500,000 investment?

• A) €650,000
• B) €370,370
• C) €500,000
• D) €384,615

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Definitions:

Written Agreement

A legally binding contract that has been documented in writing between two or more parties.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and proportions of ownership among partners in a partnership.

Risks

The potential for losing something of value, or the exposure to danger, harm, or loss.

Articles of Partnership

A document that formalizes an agreement between partners to manage and operate a business together and share its profits.