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The law of one price (LOP) is assumed to hold between the United States and Canada. The CAD is trading in the spot market at
The law of one price (LOP) is assumed to hold between the United States and Canada. The CAD is trading in the spot market at CADUSA = 0.90. If half a gallon of orange juice costs USD 2.50 in the United States, what is its cost in Canada?
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