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4. Suppose that, at the beginning of the semester $1.1025 would purchase 1.00 Euro. Suppose, also, that it now takes $1.0590 to purchase 1.00 Euro.

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image text in transcribed 4. Suppose that, at the beginning of the semester $1.1025 would purchase 1.00 Euro. Suppose, also, that it now takes $1.0590 to purchase 1.00 Euro. Also, suppose that at the beginning of the semester, $1.2439 purchased 1.00 (British Pound) while it now takes $1.2254 to 2purchase 1.00. At the same time, at the start of the semester, the $1 would purchase 145.39 Japanese Yen while $1 will now purchase 148.81 Japanese Yen. Has the U.S. \$ gotten stronger or weaker versus each these currencies since the beginning of the semester? Identify and explain events in the U.S. economy that might cause these exchange rates to change as they have. ting stronger relative to other influence foreign inve of the 5. Consider the information in \#4 above. Suppose you purchased 100,000,000 Yen at the spot exchange rate at the beginning of the semester and that you decide to sell the 100,000,000 Yen at today's spot rate. How much total profit or loss will you earn on this transaction in U. S. dollars

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