(Answered) Suppose the current exchange rate is 1 buys 8474euro and

Economics

Suppose the current exchange rate is $1 buys .8474Euro, and key interest rates in the US are at 1% while they are at 3.5% in Europe.

If my stock in the European stock market rises by 20%, what movement would need to occur to cause me to lose money on my transaction (when accounted for in dollars-the term in question is 1 year)?

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Business Economics, Economics

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