- Current holding in $US = $100 + Є100 x $0.75543/Є=$175.54.
- New exchange rate = 0.75543 x (1— 0.026) = 0.73579.
- Future holdings in $US = $100 + Є100 x 0.73579 = $173.58.
- % Change = (173.58 — 175.54) / 175.54 x 100% = —1.1%.
His holding will have dropped by 1.1% by next week if this
rate change occurs.
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