Question
The price of canola oil satisfies absolute PPP and is $2.5 per liter in the US. The exchange rate between the US and Mexico is
The price of canola oil satisfies absolute PPP and is $2.5 per liter in the US. The exchange rate between the US and Mexico is $0.07. What is the price of oil in Mexico?
| A. | 2.50 pesos | |
| B. | 0.175 pesos | |
| C. | Answer is not possible or not listed | |
| D. | 35.714 pesos | |
| E. | 0.028 pesos |
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Fundamentals Of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
1st Edition
0201844842, 978-0201844849
