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Can someone help me understand part B of this problem? 3. (20) Suppose that the spot rates are quoted as: Sos os/E = $1.25/C at

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Can someone help me understand part B of this problem?

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3. (20) Suppose that the spot rates are quoted as: Sos os/E = $1.25/C at the current period and Sis/e=$1.20/E at the next period. a. Find the % change of euro in terms of dollar. State whether euro is appreciated or depreciated against dollar. 1.20 1.25 --1= -. 04 Euro is depreciateol b. Find the % change of dollar in terms of euro. State whether dollar is appreciated or depreciated against euro

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