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You have a friend who travels frequently between Phoenix in the United State and Sydney, Australia. Because of your friend's frequent trips, they would like

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You have a friend who travels frequently between Phoenix in the United State and Sydney, Australia. Because of your friend's frequent trips, they would like to buy some luggage and they are able to find the same luggage set in both countries. In Australia, the luggage costs AUD $930 and in the United States the luggage costs $850. In order to assist your friend, please use Purchase Price Parity to determine to the USDAUD exchange rate to to see if the luggage has the same price regardless of where your friend makes their purchase. The current spot rate is USDAUD 1.0941 (note: indirect quote). The exchange rate under purchase price parity is which of the following? AUDUSD 1.0941 O AUDUSD 0.9140 O AUDUSD 1.0521 AUDUSD 0.9321

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