2. Starbucks opened its first store in Zagreb, Croatia in October 2010. The price of a tall vanilla latte in Zagreb is kn25.70. In New York, the price of a tall vanilla latte is $2.65. The exchange rate between Croatian kunas (kn) and U.S dollars is kn5.6288/$. (a) According to purchasing power parity, is the Croatian kuna overvalued or undervalued? (b) By what percent is the kuna overvalued or undervalued?