Assume that an investor purchased 200,000,000 Japanese yen in New York at an exchange rate of 101 yen to the dollar and simultaneously sold the yen in Tokyo at an exchange rate of 99 Japanese yen to the dollar

Further assume that there was no cost associated with this transaction. What profit or loss did the investor make? Round your answer to the nearest dollar.
A) ($400,040) loss
B) $40,004
C) ($40,004) loss
D) $400,040 profit


Answer: B

Business

You might also like to view...

Liabilities and stockholders' equity are _____________by debits

Fill in the blank(s) with correct word

Business

There are many ways to determine how competent you are as a nonverbal communicator. Please share two ideas you find in the book, and explain one in detail.

What will be an ideal response?

Business

A company using the perpetual inventory system purchased merchandise on account for $5,000. Give the journal entry to record this transaction

What will be an ideal response

Business

Data communications, a specialized subset of telecommunications, refers to the electronic transmission and reception of digital data, typically between computer systems.

Answer the following statement true (T) or false (F)

Business