On June 1, the euro was trading at 1 to 1.12 US dollars. A professional sport team in the US negotiating a contract with a free agent from Europe offered the player $10,000,000.

Please calculate the players value on that day using the nominal exchange rate.

The players agent replied that they wanted the equivalent of 9,000,000 euros three days later. On that day, the exchange rate of the euro moved from 1 to 1.09 US dollars. Based on this, how much more or less will the team have to pay in US dollars compared to the original offer of $10,000,000?

If the exchange rate had remained at 1 to 1.12 (euros to USD), how much more would the team need to have paid the player?

Based on this, how much did the team save in total based on the change in the exchange rate?

On May 27, 2016, before the Brexit vote occurred in the UK, the pound was trading at 1 = 1.46 USD. A company in the US selling a device that allows teams to track the movement of players had priced the system at $3,000,000, and was also selling the device at 2.1 million in the UK.

Based on this information, calculate the real exchange rate for this device.

Based on the real exchange rate that was just calculated, is the product cheaper or more expensive in the US?

On October 28, 2016, a few months after the Brexit vote, the value of the pound plummeted, ending trading at 1 pound = 1.22 USD. Assuming no change in the price of the device, calculate the new real exchange rate.

Comparing the real exchange rate from June to the one in October, how has the value of the product changed? Is this good or bad for the company?

Considering that customers would see the change in the value of the product, the company has decided that they are going to adjust the UK price using the real exchange rate from June to restore the rate to 0.9874. Please calculate the new UK price. Assume that the exchange rate is still 1 pound to 1.22 USD.

Reconsidering, the company has now decided that they would like the price in the US to be equivalent to that in the UK, and thus it should have a real exchange rate of 1. Based on this, calculate the new UK price, assuming the US price is $3,000,000 and the exchange rate is 1 pound to 1.22 USD.