The Utopian peso was fixed through a currency board at Ps1.00/$ throughout the 1990s. In January 2002 the Argentine peso was floated. In January 2003 it was trading at Ps1.50/$. During that one year period Utopia's inflation rate was 68% on an annualized basis. Inflation in the United States during that same period was 4.8% annualized. In January 2003, the peso is

Select one:

a. Under-valued by 6.9%

b. Over-valued by 37.6%

c. Under-valued by 37.6%

d. Under-valued by 6.4%

e. Over-valued by 6.9%