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Suppose you collected the following financial information from various sources: Financial information as of July 2022 a Based on the information provided in the table

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Suppose you collected the following financial information from various sources: Financial information as of July 2022 a Based on the information provided in the table above, compute the theoretical USD/HKD exchange rate (i.e. the value of X ) as implied by the Purchasing Power Parity (PPP) theory. (6 marks) b Based on the information provided in the table above, calculate the US dollar price of Big Mac in Britain (i.e. the value of Y) ). (6 marks) c Compare the market exchange rate and the theoretical PPP exchange rate. Identify the percentage of undervaluation/overvaluation of the Hong Kong dollar (HKD) and British pound (GBP) against the US dollar. (8 marks)

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