Use the following information to answer the first three questions $($show calculations and explainations for each questions $)$

Michael is an investor based in New York He holds $100$ shares of Bescherelle, a French firm that went public in March $2015.$ He bought the shares at $18$ per share.

At that time, the dollar euro exchange rate was $$1\mathrm{.}360/.$ Now, the share is trading at $25$ and the dollar euro exchange rate is $$1\mathrm{.}410/.$

If Michael sells his shares today, what percentage change in the share price would he receive?

$55\mathrm{.}43\%$

$40\mathrm{.}11\%$

$38\mathrm{.}89\%$

$23\mathrm{.}34\%$

$15\mathrm{.}30\%$

Over this period, by how much has the Euro appreciated$/$depreciated against the dollar?

Appreciated by $3\mathrm{.}68\%$

Depreciated by $3\mathrm{.}68\%$

Devalued by $3\mathrm{.}68\%$

Appreciated by $3\mathrm{.}54\%$

Depreciated by $3\mathrm{.}54\%$

If Michael sold his shares at those rates, what would be the total return $($in USD$)?$

$$987$

$$1,077$

$$1,257$

$$1,327$

$$3,52531$ Coffee Bean and Tea Leaf $($CBTL$)$ started operating in Malaysia in May, $2008.$ The price of an Americano in Kuala Lumpur is RM$8.$ The same Americano can be purchased in Miami for $$3.$ The exchange rate between Malaysian Ringgit and U$.$S dollar is RM$4\mathrm{.}29/$$$.$ According to purchasing power parity, is the Malaysian ringgit overvalued or undervalued?

A$.$ Overvalued by $60\mathrm{.}67\%$

B$.$ Undervalued by $60\mathrm{.}67\%$

C$.$ Overvalued by $62\%$

D$.$ Overvalued by $37\mathrm{.}76\%$

E$.$ Undervalued by $37\mathrm{.}76\%$ Japan$$s Sony exports budget cameras to the United States. When the exchange rate was $130/$$$,$ the price of the Sony Camera was $$150$ in the US$.$ Now, the sport rate is $110/$$ and Sony is selling the cameras for $$170.$ What is the degree of pass$-$through to the U$.$S$.$ dollar price of the Sony Camera?

A$.95\mathrm{.}9\%$

B$.87\mathrm{.}7$

C$.77\mathrm{.}36\%$

D$.73\mathrm{.}2\%$

$.60\mathrm{.}18\%$

$37.$ Wait six months and make payment at spot rate: choose the correct values corresponding to the expected rates given.

A$.$ $ $6,250,000\mathrm{.}00,$ $ $6,666,66\mathrm{.}67,$ $ $7,894,736\mathrm{.}84$

B$.$ $ $6,350,000\mathrm{.}00,$ $ $6,766,66\mathrm{.}67,$ $ $8,894,736\mathrm{.}84$

C$.$ $ $6,250,000\mathrm{.}00,$ $ $6,766,66\mathrm{.}67,$ $$7,894,736\mathrm{.}84$

D$.$ $ $6,250,000\mathrm{.}00,$ $ $6,666,66\mathrm{.}67,$ $ $8,894,736\mathrm{.}84$

E$.$ $ $7,500,000\mathrm{.}00,$ $ $7,142,857\mathrm{.}14,$ $ $7,894,736\mathrm{.}84$

$38.$ Purchase Ringgit forward $3-$months:

A$.$ $ $6,666,66\mathrm{.}67$

B$.$ $ $7,142,857\mathrm{.}14$

C$.$ $ $7,500,000$

D$.$ $$7,894,736\mathrm{.}84$

E$.$ $$6,250,000$

$39.$ Transfer dollars to Ringgit today, invest for $3-$months:

A$.$ $ $7,352,941\mathrm{.}18$

B$.$ $ $7,500,000$

C$.$ $$7,628,676\mathrm{.}47$

D$.$ $$7,650,000$

E$.$ $$7,575,000$

$40.$ Choose the best alternative

A$.$ Remain Unhedged

B$.$ All the alternatives are equally good

C$.$ Transferring dollars to Ringgit and investing them for $3-$months

D$.$ Forward Contract

E$.$ More information is needed