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A 2GB Nano sells at US$149 in the U.S. It sells at 588 Brazilian reals in Brazil. The current exchange rate for Brazilian Real is

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A 2GB Nano sells at US$149 in the U.S. It sells at 588 Brazilian reals in Brazil. The current exchange rate for Brazilian Real is 2 Reals per U.S. dollar. (a) If purchasing power parity holds, other things equal, is the Brazilian real overvalued or undervalued? By how much in percent terms? (b) How much is the Nano overpriced or underpriced in Brazil

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