P2.4 Erin McQueen purchased 50 shares of BMW, a German stock traded on the Frankfurt Exchange, for 64.5 euros () per share exactly one year ago when the exchange rate was .78 /US$. Today the stock is trading at 68.4 per share, and the exchange rate is .86 /USS.

a. Did the depreciate or appreciate relative to the US$ during the past year? Explain.

b. How much in USS did Erin pay for her 50 shares of BMW when she purchased them a year ago?

c. For how much in US$ can Erin sell her BMW shares today?

d. Ignoring brokerage fees and taxes, how much profit (or loss) in US$ will Erin realize on her BMW stock if she sells it today?