Question
An iPhone 11 Pro costs SGD 1,649 in Singapore, while the same phone costs USD 999. The current spot exchange rate SGD/USD is 1.3600. The
An iPhone 11 Pro costs SGD 1,649 in Singapore, while the same phone costs USD 999. The current spot exchange rate SGD/USD is 1.3600. The inflation rate in Singapore and the US is 0.5% and 1.7%, respectively. Based on absolute PPP, what is the implied USD/SGD exchange rate?
A. 0.7441
B. 1.6507
C. 0.6058
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance, Roberts Brooks
8th Edition
0324601212, 9780324601213
