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Assume USD / MXN 2 0 in nominal currency exchange rate terms. A Toyota Forerunner costs $ 5 2 , 0 0 0 in the

Assume USD/MXN 20 in nominal currency exchange rate terms. A Toyota Forerunner costs $52,000 in the U.S. If Purchasing Power Parity (PPP) were to hold true based on USD/MXN 20 in nominal currency exchange rate terms, and that fact that the vehicle costs $52,000 in the U.S., what would we expect the Forerunner to cost in Mexico, in Mexican Peso terms? (We are not asking what the vehicle actually costs in Mexico. We are asking what we would expect the vehicle to cost if PPP held true based on these data points).
A.
1,225,000.
B.
1,040,000.
C.
52,000.
D.
1,520,000.

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