Assume that 1 unit of Currency Y costs 0.49 units of Currency X, 1 unit of Currency Z costs 7.99 units of Currency Y, and 1 unit of Currency Z costs 4.02 units of Currency X. By what percent is Currency Z miss-priced relative to Currency Y? If Z is overpriced, type a positive number and if Currency Z in underpriced, type a negative number. Go out four decimals. ( Hint to get you started: Take any one of those transaction rates and figure out what the third one should be)
Assume that 1 unit of Currency Y costs 0.49 units of Currency X, 1 unit of Currency Z costs 7.99 units of Currency Y, and 1 unit of Currency Z costs 4.02 units of Currency X. By what percent is Currency Z miss-priced relative to Currency Y? If Z is overpriced, type a positive number and if Currency Z in underpriced, type a negative number. Go out four decimals. ( Hint to get you started: Take any one of those transaction rates and figure out what the third one should be)
Chapter4: Exchange Rate Determination
Section: Chapter Questions
Problem 1BIC
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Assume that 1 unit of Currency Y costs 0.49 units of Currency X, 1 unit of Currency Z costs 7.99 units of Currency Y, and 1 unit of Currency Z costs 4.02 units of Currency X. By what percent is Currency Z miss-priced relative to Currency Y? If Z is overpriced, type a positive number and if Currency Z in underpriced, type a negative number. Go out four decimals. ( Hint to get you started: Take any one of those transaction rates and figure out what the third one should be)
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