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Suppose that, at the beginning of the semester $1.1825 would purchase 1.00 Euro. Suppose, also, that...

  1. Suppose that, at the beginning of the semester $1.1825 would purchase 1.00 Euro. Suppose, also, that it now takes $1.190 to purchase 1.00 Euro. Also, suppose that at the beginning of the semester, $1.3439 purchased £1.00 while it now takes $1.3154 to purchase £1.00. At the same time, at the start of the semester, the $1 would purchase 111.39 Japanese Yen while $1 will now purchase 108.81 Japanese Yen.

  1. Consider the information in #4 above. Suppose you purchased 100,000 euro at the spot exchange rate at the beginning of the semester and that you decide to sell the 100,000 euro at today’s spot rate. How much total profit or loss will you earn on this transaction in U. S. dollars?

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