question archive Problem 2 • Telmex dual listing and the Mexican peso devaluation • Shares of Telefonos Mexicanos (Telmex), listed on the New York Stock Exchange (NYSE), fell from $60 to $48 when the Mexican peso (MXN) was devalued from MXN 3
Problem 2 • Telmex dual listing and the Mexican peso devaluation • Shares of Telefonos Mexicanos (Telmex), listed on the New York Stock Exchange (NYSE), fell from $60 to $48 when the Mexican peso (MXN) was devalued from MXN 3
Subject:FinancePrice: Bought3
Problem 2 • Telmex dual listing and the Mexican peso devaluation • Shares of Telefonos Mexicanos (Telmex), listed on the New York Stock Exchange (NYSE), fell from $60 to $48 when the Mexican peso (MXN) was devalued from MXN 3.44 to 6.05 = US$1 on December 19, 1994. • a. Compute the percentage depreciation of the Mexican peso. • As a trader for Barings Securities specializing in Mexican stocks, do you see profit opportunities? What are the risks involved?
