Last year a technology company bought one million in shares of a GM stock at €40 per share and sold it one year later at €50. The spot exchange rate one year ago was $1.40 = €1 and the spot rate prevailing at the end of the year was $1.60 = €1.
a. What are the values of that technology company's gain or the company's loss in Euros?
b. What are the values of the technology company gain or loss in USD?
c. Explain the difference between the technology company whom bought the shares of GM portfolio performance in Euros and USD.