Erin McQueen, a United States investor, purchased 50 shares of BMW, a German stock traded on the

Frankfurt Exchange, for 85.04(euros) per share exactly one year ago, when the exchange rate was 0.94$/

(i.e. 1 was worth $0.94). Today the stock is trading at 86.77 per share, and the exchange rate is 1.26 $/.

(Enter all losses as negative numbers.)

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

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

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

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

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