Question
A new Panasonic television costs 900 euros in France and 625 Canadian dollars in Canada. Suppose the current exchange rates are as follows: 1.2/$, $1.25/C$
A new Panasonic television costs 900 euros in France and 625 Canadian dollars in Canada. Suppose the current exchange rates are as follows:
1.2/$, $1.25/C$
Find the arbitrage profit (in terms of euros) per television according to absolute PPP. Round intermediate steps to four decimals.
383.33
183.33
37.5
25
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Financial Management Principles And Practices
Authors: Sudhindra Bhat
2nd Edition
8174465863, 978-8174465863
