Question
The US price of a Big Mac is 2.20 USD and the Hong Kong price is 15.30 HKD. If the law of one price holds,
The US price of a Big Mac is 2.20 USD and the Hong Kong price is 15.30 HKD. If the law of one price holds, the exchange rate between the two currencies in terms of a direct quote on the USD from a Hong Kong perspective is:
a. 6.95
b. 0.144
c. 33.66
d. 13.10
The answer is A how do I work that out?
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Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay, Robert J. Hughes, Melissa Hart
12th edition
1259720683, 978-1259720680
