Problem
• You exchanged $100,000.00 in US currency for Euros at the exchange rate of 1 Euro per $1.65 of US currency. You then bought 1700 shares of WEWE corporation (a French firm) for 35.16 Euros per share on 6/24/2008. On 9/24/2008 you sold the 1700 shares for 37.66 Euros per share and converted the proceeds to US currency at the rate of 1 Euro to $1.55. What was your profit/Loss in Euros from just the stock transaction? Did you have an overall gain or loss after repatriating the funds to the US? How much was it?
• Look at problem 2 again and change the final exchange rate from 1.55 to 1.35. Did you have an overall gain or loss after repatriating the funds to the US? How much was it?