You invested three thousand US dollars and purchased shares of a German corporation when the exchange rate was US1.00 = 0.70 Euros. After six months, you sold all of the shares for 3,100 euros when the exchange rate was US1.00 = 0.68 euros. No dividends were paid during the time you owned the shares of stock. What is the amount of gain or loss on this investment in US dollars?   Group of answer choices $2,458.82 $892.00 Loss $1,000.00 $273.11 none of the given answers is correct

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Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.