231.89 264.3540 498 527.88 989 1038.45
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:1. – Using the following information, determine each one of the theoretical Exchange Rates
(E.R.) for December of year 02 according to the Relative PPP Theory.
MARKET
MARKET
E.R.
E.R.
COUNTRY
CURRENCY
СРI
CPI
Dec-01
Dec-02
Dec-01
Dec-02
Mexico
МХР
231.89
264.3546
19.56
20.15
Turkey
TRY (Lira)
498
527.88
5.9419
6.07673
Australia
AUD
989
1038.45
1.7759
1.81183
Japan
JPY
678
745.8
105.866
113.978
United
Kingdom
GBP
905.26
986.7334
0.5991
0.617849
South Korea
KRW (Won)
795.4
874.94
1,658.62
1,793.37
Canada
CAD
523.12
554.5072
1.3736
1.4942
U.S.A.
USD
1.5
1.56
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