# Erin McQueen purchased 50 shares of BMW, a German stock traded on the Frankfurt Exchange, for 64.5

## Question:

Erin McQueen purchased 50 shares of BMW, a German stock traded on the Frankfurt Exchange, for 64.5 euros (€) per share exactly 1 year ago when the exchange rate was 0.67 €/US$. Today the stock is trading at 71.8 (€) per share, and the exchange rate is 0.75 €/US$.
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?
c. For how much in US$can Erin sell her BMW shares today? d. Ignoring brokerage fees and taxes, how much profit (or loss) in US$ will Erin realize on her BMW stock if she sells it today?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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