Question
Suppose the spot exchange rate for the Canadian dollar is C$1.22 and the six-month forward rate is C$1.27. Assuming absolute PPP holds, what is the
Suppose the spot exchange rate for the Canadian dollar is C$1.22 and the six-month forward rate is C$1.27. Assuming absolute PPP holds, what is the current cost in the United States of a hamburger if the price in Canada of an equivalent burger in Canada is C$6.00?
Group of answer choices
$5.15
$4.23
$5.36
$4.99
$4.92
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Other Peoples Money
Authors: John Kay
1st Edition
1610397150, 978-1610397155
