Question

In each of the following? cases, calculate the price of one share of the foreign stock measured in United States dollars? (US$).

a. A Belgian stock priced at

101.6101.6

euros

?(euro€?)

when the exchange rate is

0.84140.8414euro€?/US$.

b. A Swiss stock priced at

92.192.1

Swiss francs? (Sf) when the exchange rate is

0.9620.962?Sf/US$.

c. A Japanese stock priced at

1 comma 3431,343

yen? (¥) when the exchange rate is

107.1538107.1538?¥/US$.

a. The Belgian stock priced in U.S. dollars is

?$nothing.

? (Round to the nearest? cent.)b. The Swiss stock priced in U.S. dollars is

?$nothing.

?(Round to the nearest? cent.)c. The Japanese stock priced in U.S. dollars is

?$nothing.

?(Round to the nearest? cent.)

Answer 1

This question requires calculation of equivalent exchange rate.

a. A Belgian stock priced at €101.6.

Exchange rate is 0.8414€/US$

As per exchange rate given 0.8414€ = 1 US $

So, the price of €101.6 would be (101.6/0.8414) US$ = 120.7 US$

Hence, A Belgian stock priced at €101.6 will be priced as US$ 120.7

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b. A Swiss stock priced at Sf 92.1

Exchange rate is 0.962Sf/US$

As per exchange rate given 0.962Sf = 1 US $

So, the price of Sf92.1 would be (92.1/0.962) US$ = 95.7 US$

Hence, a Swiss stock priced at Sf 92.1 will be priced as US$ 95.7

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c. A Japanese stock priced at 1,343Yen

Exchange rate is 107.1538Yen/US$

As per exchange rate given 107.1538Yen = 1 US $

So, the price of 1,343Yen would be (1343/107.1538) US$ = 12.5 US$

Hence, a Japanese stock priced at 1,343Yen will be priced as US$ 12.5

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