Suppose that the exchange rate is 50 Bangladesh taka per Canadian dollar, and that a bushel of rice costs 200 taka in Bangladesh and $3 in Canada. Which of the following is consistent with these facts?

Select one:

-The real exchange rate is less than one, and arbitrageurs could profit by buying rice in Canadaand selling itin Bangladesh.

-The real exchange rate is greater than one, and arbitrageurs could profit by buying rice in Bangladesh andselling it in Canada.

-The real exchange rate is greater than one, and arbitrageurs could profit by buying rice in Canada and sellingit in Bangladesh.

-The real exchange rate is less than one, and arbitrageurs could profit by buying rice in Bangladesh andselling it in Canada.