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If the Exchange at Time T Is Eₜ = €1

Question 131

Multiple Choice

If the exchange at time t is Eₜ = €1.2/$. You invest $1 in an euro asset at t,which has an interest of 8%. When the asset expires at t+1,you get paid €________. If Eₜ+1 = €1.02/$,then your rate of return in terms of € is ________%.


A) 1.3;8
B) 1.3;6
C) 1.08;6
D) 1.08;8

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