A. Creating an alternative to the Big-Mac Index (~150 words)

Choose a product other than a mobile phone to create your own alternative to the Big-Mac index. Use your index to calculate to what extent the currency of Poland is over-or under-valued relative to the US dollar for a single point in time that data is available. Show your work. For this part, you can use data from any period.

B. Discussion of your index (~350 words)

B1. Discuss how well or poor your index satisfies each of the four assumptions behind the Law of One Price compared to the Raw Big-Mac Index.

B2. Big-Mac Index has a GDP-adjusted version. Suppose, hypothetically, someone has the information to create a similar GDP(per capita)-adjusted version for your index. Do you expect this GDP(per capita)-adjusted version of your index will indicate a larger or smaller or similar degree of over-/under-valuation as in Part (1)? Explain your answer.