FX Quotes

Kapie

This is doing my head in:

EUR:USD 0.9959- 0.9960

Right so this means you can buy 1 USD for €0.9960 and Sell 1 USD for €0.9959.

So if you have 1 euro and want to buy dollars you would get $0.9960. On the flip side if you have $0.9959 and want EUROs you would divide by 0.9959 and get 1 Euro. Right?

Now in a question involving a US investor investing in a European company how does it all work? Let's say at the beginning of the investment the price was €40 and it paid a div of €0.5 and you bought 1000 shares.

When you come to sell it the FX rate is:

EUR:USD 0.9965- 0.9968

Which rates do you use and most importantly why, for calculating USD returns?

Thanks