The prices of an iPad (8th generation) 32GB in some countries are assumed to be as follows: • 329.99 USD in the US • 3499 RMB in China 429 CAD in Canada • £319.97 in the UK 34,800 yen in Japan The current exchange rates are assumed to be as follows: EUSDIRMB = 0.16 EUSDICAD=0.82 EUSDIE = 1.41 EUSDlyen = 0.009 Show that each of the four non-US currencies (RMB,CAD, Pound,Yen) is over/under-valued based on Index. Write down your calculations.
The prices of an iPad (8th generation) 32GB in some countries are assumed to be as follows: • 329.99 USD in the US • 3499 RMB in China 429 CAD in Canada • £319.97 in the UK 34,800 yen in Japan The current exchange rates are assumed to be as follows: EUSDIRMB = 0.16 EUSDICAD=0.82 EUSDIE = 1.41 EUSDlyen = 0.009 Show that each of the four non-US currencies (RMB,CAD, Pound,Yen) is over/under-valued based on Index. Write down your calculations.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The prices of an iPad (8th generation) 32GB in some countries are assumed to be as follows:
● 329.99 USD in the US
. 3499 RMB in China
• 429 CAD in Canada
• £319.97 in the UK
34,800 yen in Japan
The current exchange rates are assumed to be as follows:
EUSDIRMB = 0.16
●
EUSDICAD= 0.82
●
EUSDIE = 1.41
●
EUSD/yen = 0.009
Show that each of the four non-US currencies (RMB,CAD, Pound, Yen) is over/under-valued based on the iPad
Index. Write down your calculations.
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