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Purchasing Power Parity A product sells in the U.S. for $120.00 and MXN 2,510.46 in Mexico. Based on the following information, is the product properly

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Purchasing Power Parity A product sells in the U.S. for $120.00 and MXN 2,510.46 in Mexico. Based on the following information, is the product properly priced in both countries? Forward MXN/USD 0.0479 Time (months) 3 nh 2.00% 3.00% Spot MXN/USD 0.0478 rt No, one of the prices should be 5.74 Yes, they are properly priced Yes, and arbitrage is possible No, and arbitrage is possible

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