Assume that USD$/$MXN $20$ in nominal currency exchange rate terms. Assume that a baseball bat costs $$40$ in the U$.$S$.$ Assume the same baseball bat costs $600$ Mexican Pesos in Mexico. Based on these data points, select the best answer choice below. NOTE: Pay attention to all pieces of the answer choices below. They must all be correct! Pay attention to details.

A$.$

I would expect to pay the equivalent of $$15$ USD for the bat in Mexico.

The real MXN$/$USD currency exchange rate is $\mathrm{.}07.$

The real USD$/$MXN currency exchange rate is $15.$

The USD is undervalued.

I am better off buying the bat in Mexico.

B$.$

I would expect to pay the equivalent of $$30$ USD for the bat in Mexico.

The real MXN$/$USD currency exchange rate is $15.$

The real USD$/$MXN currency exchange rate is $\mathrm{.}07.$

The USD is overvalued.

I am better off buying the bat in Mexico.

C$.$

I would expect to pay the equivalent of $$30$ USD for the bat in Mexico.

The real MXN$/$USD currency exchange rate is $\mathrm{.}07.$

The real USD$/$MXN currency exchange rate is $15.$

The USD is overvalued.

I am better off buying the bat in Mexico.

D$.$

I would expect to pay the equivalent of $$40$ USD for the bat in Mexico.

The real MXN$/$USD currency exchange rate is $\mathrm{.}07.$

The real USD$/$MXN currency exchange rate is $20.$

We have PPP between the USD and MXN at USD$/$MXN $20.$

I am better off buying the bat in the U$.$S$.$