Question
A Big Mac costs 285 roubles in Moscow, and $5.71 in Chicago. If the official exchange rate is $0.016 per rouble, what percentage over or
A Big Mac costs 285 roubles in Moscow, and $5.71 in Chicago. If the official exchange rate is $0.016 per rouble, what percentage over or underpriced are roubles?
Give your answer in percentage points - if the rouble is 30% overpriced, your answer should be 30, if it's 30 percent underpriced, your answer should be -30.
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Applied Quantitative Finance
Authors: Härdle
3rd Edition
3662544857, 978-3662544853
