Dell is selling $20,000$ units in Europe at an average price of $1,700$ per unit. Both the spot and forward exchange rates are $$1\mathrm{.}201.$ The cost of each unit in dollars is $$,500$ per unit. The elasticity of demand for Dell computers in Europe is $=1\mathrm{.}5.$

Now consider a depreciation of Euro $($relative to US dollar$)$ from $$1\mathrm{.}201in$ to $$\frac{1\mathrm{.}08}{i}n$ and assume zero passthrough. What is the delta for Dell's dollar profit?

$0$

$2\mathrm{.}35$

$3\mathrm{.}65$

$3\mathrm{.}78$