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way. you pu the one month US interest rate was 6.30% (both rates are per annum, with monthly compounding). At the end of May, the exchange rate was SUST-$NZ 1.73, while the shares were worth $US 60.76. Apple paid no dividends during May. What was your ($NZ) holding period return over the month of May? O-1.46% O-1.67% O 0.77% O-1.10%

way. you pu the one month US interest rate was 6.30% (both rates are per annum, with monthly compounding). At the end of May, the exchange rate was SUST-$NZ 1.73, while the shares were worth $US 60.76. Apple paid no dividends during May. What was your ($NZ) holding period return over the month of May? O-1.46% O-1.67% O 0.77% O-1.10%

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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At the start of May, you purchased some shares in Apple (a US company) for $US 61.79, and hedged your position using forward contracts (hedging the purchase value of the shares). The exchange rate at the time of purchase was $US1 = $NZ 1.72, while the one month NZ interest rate was 8.90% and the one month US interest rate was 6.30% (both rates are per annum, with monthly compounding). At the end of May, the exchange rate was $US1 = $NZ 1.73, while the shares were worth $US 60.76. Apple paid no dividends during May. What was your ($NZ) holding period return over the month of May? -1.46% -1.67% O 0.77% O -1.10%
Transcribed Image Text:At the start of May, you purchased some shares in Apple (a US company) for $US 61.79, and hedged your position using forward contracts (hedging the purchase value of the shares). The exchange rate at the time of purchase was $US1 = $NZ 1.72, while the one month NZ interest rate was 8.90% and the one month US interest rate was 6.30% (both rates are per annum, with monthly compounding). At the end of May, the exchange rate was $US1 = $NZ 1.73, while the shares were worth $US 60.76. Apple paid no dividends during May. What was your ($NZ) holding period return over the month of May? -1.46% -1.67% O 0.77% O -1.10%
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