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From the Big Mac Index: A Big Mac is selling on average for $3.06 in the USA and on average for EUR2.92 in European member

From the Big Mac Index: A Big Mac is selling on average for $3.06 in the USA and on average for EUR2.92 in European member countries. If the actual exchange rate is 1.22 USD/EUR, then, relative to its purchasing power parity, the Euro is trading at an FX rate that is:

a. undervalued by about 14%

b. undervalued by about 22%

c. overvalued by about 14%

d. overvalued by about 16%

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