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Posted on Jun 22, 2024

Suppose you had $10,000 to travel for a month to another country, where would it be? What is their currency? What are the spot and

Suppose you had $10,000 to travel for a month to another country,

where would it be?

What is their currency?

What are the spot and forward rate on that currency against USD?

How much is Big Mac in that country ( if they sell it there)?

Does the price indicate overvaluation against USD or undervaluation? Explain your answer.

Does the PPP hold with that country? Are the goods and services the same price?

What about Relative PPP?

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