If an identical product or service can be sold in two different markets, the product's price should be the same in both markets, net of transactions costs and taxes. This theory is called: The Law of Identical Products The Fisher Effect Interest Rate Parity The Law of One Price Question 10 1 pts In Zagreb (Croatia), the price of a Starbucks tall vanilla latte is Kn 25.7. In New York City, the price of an identical tall vanilla latte is $2.65. The exchange rate between Croatian kunas (kn) and U.S. dollars is kn 5.6288/USD. According to Absolute PPP, the Croatian kuna is: overvalued because the exchange rate should be Kn 9.6981/$ overvalued because the exchange rate should be Kn 0.1031/$ undervalued because the exchange rate should be kn 9.6981/$ undervalued because the exchange rate should be kn 0.1031/$