Investment - On January 6 2002 Argentina changed its...

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On January 6, 2002, Argentina changed its 10-year policy of pegging its peso to the U.S. dollar. Overnight, the value of the peso changed from 1 peso per dollar to 1.55 pesos per dollar. Which of the following is true?(a) the Argentinian peso became stronger compared to the U.S. dollar(b) the U.S. dollar became stronger compared to the Argentinian peso(c) there is no change in the foreign exchange rate between the U.S. dollar and the Argentinian peso(d) none of the above are true
An American investor buys 100 shares of London Bridges at a price of £23 (or 23 UK pounds) when the exchange rate is $2/1£ (or $2 dollars = 1 pound). A year later the company paid a dividend of £2 and the stock was selling for £20 after the dividend. What is the one year overall rate of return to the American investor if the exchange rate is $2.1/1£ after one year? (6 points)

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