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A new computer costs 1100 pounds in the UK and 880 Canadian dollars in Canada. Suppose the current exchange rates are as follows: 1.25/S,
A new computer costs 1100 pounds in the UK and 880 Canadian dollars in Canada. Suppose the current exchange rates are as follows: 1.25/S, $1.05/CS Find the arbitrage profit (in terms of Canadian dollars) per computer according to absolute PPP. Round intermediate steps to four decimals and your final answer to two decimals. Do not use currency symbols wher entering your response.
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
