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One dollar is worth 8.20 yuan and 1.60 peso. One peso is worth 6.21 yuan. Which statement is most consistent with the triangle arbitrage equilibrium

One dollar is worth 8.20 yuan and 1.60 peso. One peso is worth 6.21 yuan. Which statement is most consistent with the triangle arbitrage equilibrium condition?

a. the dollar is undervalued relative to the peso b. the dollar is overvalued relative to the yuan c. the peso is overvalued relative to the yuan d. Two choices, A and C, are correct e. None of the A-B-C choices are correct

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