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You have the following exchange rates: Euro 0.49=$1, $1.36=British pound 1, and Euro 0.62=British pound 1. Looking at those rates and checking the respective cross-rates,
You have the following exchange rates: Euro 0.49=$1, $1.36=British pound 1, and Euro 0.62=British pound 1. Looking at those rates and checking the respective cross-rates, what of the following is true?
A. Euro is overvalued relative to British pound.
B. Euro is undervalued relative to $.
C. Euro is overvalued relative to $.
D. Both A and B
E. Both A and C
F. Both B and C
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