Image transcription text 4. Suppose one euro (€) costs $1.20 on January 1 and on March 1, one euro costs $1.15. i) Has the dollar

Image transcription text 4. Suppose one euro (€) costs $1.20 on January 1 and on March 1, one euro costs $1.15. i) Has the dollar appreciated or depreciated against the euro over this time period? Image transcription text ii) If a U.S. firm wanted to purchase goods from a German firm and the total value of
goods is €254,000, how much would the firm save by purchasing the goods on March 1 compared to buying them on January 1? Image transcription text iii) If on January 1 the firm knew exactly what the exchange rate was going to be on March 1, would it have hedged using a. forward rate of $1.16 per euro?

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