In: Finance
In each of the following cases, calculate the price of one share of the foreign stock measured in United States dollars (US$).
a. A Belgian stock priced at 103.1 euros (euro) when the exchange rate is 0.9025 euro/US$.
b. A Swiss stock priced at 93.1 Swiss francs (Sf) when the exchange rate is 0.968 Sf/US$.
c. A Japanese stock priced at 1,334 yen (¥) when the exchange rate is 109.1149 ¥/US$.
a. A Belgian stock priced at 103.1 euros (euro) when the exchange rate is 0.9025 euro/US$. | ||||||||
.9025 euro | 1 USD | |||||||
103.1 euro | (103.1/.9025)*1USD | |||||||
103.1 euro | 114.24 USD | |||||||
The price of one share of the Belgian stock measured in United States dollars is $114.24. | ||||||||
b. A Swiss stock priced at 93.1 Swiss francs (Sf) when the exchange rate is 0.968 Sf/US$. | ||||||||
.968 sf | 1 USD | |||||||
93.1 sf | (93.1/.968)*1USD | |||||||
93.1 sf | 96.18 USD | |||||||
The price of one share of the Swiss stock measured in United States dollars is $96.18. | ||||||||
c. A Japanese stock priced at 1,334 yen (¥) when the exchange rate is 109.1149 ¥/US$. | ||||||||
109.1149 jpy | 1 USD | |||||||
1334 jpy | (1334/109.1149)*1USD | |||||||
1334 jpy | 12.23 USD | |||||||
The price of one share of the Japanese stock measured in United States dollars is $12.23. |