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In 2013, the Wall Street Journal created the "Latte Index" which tracks the price of a Starbucks Grande Latte in major cities (29 cities around the world). The law of one price for lattes suggests that they should cost the same when their prices are converted into a common currency. The benchmark city was New York, where the Starbucks latte cost $3.45. The USD price of a latte in Zurich, Switzerland is $5.76, while the USD price of a latte in Mexico City, Mexico is $2.19. It therefor follows that, relative to the US dollar, a) the Swiss franc is undervalued and the Mexican peso overvalued. b) you cannot make a determination regarding $ over(under)-valuation for the two foreign currencies based on the information provided. c) the Swiss franc is overvalued and the Mexican peso undervalued. d) both currencies are overvalued. e) both currencies are undervalued