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Sell dollars and buy 40000 Euros at 0.9960 $ per Euro = $39,840
Dividends = 0.5 * 1000 = 500 Euros
Price Appreciation of stock = 0
Net = 4000+500 = 40500 Euros
Sell the stock and realize 40500 Euros total.
Buy Dollars at 0.9968 $ per Euro

40500/0.9968 = 40630

Gain = 40630/39840 -1 = 1.98%

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