Mr. james k. silber, an avid international investor based in the united states, has just sold 100 share of xyz corp, a german firm, at €60 per share. the shares were bought for €50 per share a year ago. the exchange rate is $1.23/€ now and was $1.35/€ a year ago. there was no dividend payout by xyz corp during mr. silber's holding period. to hedge his foreign exchange risk, mr. silber sold forward €5,000, his principal investment amount, at the forward exchange rate of $1.30/€ a year ago when he first bought his xyz corp shares.
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hey!what is this... . too long
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