Assume that five years a euro was trading at a direct method quotation of $.8767. Also assume that recently the indirect method quotation was .8219 euros per U.S. dollar.

a. Calculate euro “currency per U.S. dollar” five years ago.

b. Calculate the “U.S. dollar equivalent” of a euro this year.

c. Determine the percentage change (appreciation or depreciation) of the U.S. dollar value of one euro between five years ago and this year.

d. Determine the percentage change (appreciation or depreciation) of the U.S. dollar value of the euro currency per U.S. dollar between five years ago and this year.