Foreign exchange and commodity prices. While traveling in the following countries, you occasionally resort to U.S. food. You pay the following prices for a Big Mac: India: 214 rupees Kuwait: 1.43 dinars Sweden: 34.54 kronor Ukraine: 135 rubles If the price of a Big Mac is $4.61 in the United States, what are the implied exchange rates for these currencies?
Foreign exchange and commodity prices. While traveling in the following countries, you occasionally resort to U.S. food. You pay the following prices for a Big Mac: India: 214 rupees Kuwait: 1.43 dinars Sweden: 34.54 kronor Ukraine: 135 rubles If the price of a Big Mac is $4.61 in the United States, what are the implied exchange rates for these currencies?
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
Related questions
Question
Chapter 18, Question 2. Was incorrect the first time. Attached is a similar question with answers
Transcribed Image Text:Foreign exchange and commodity prices. While traveling in the following countries, you occasionally resort to U.S. food. You pay the following prices for a Big Mac:
India: 214 rupees
Kuwait: 1.39 dinars
Sweden: 34.37 kronor
Ukraine: 137 rubles
If the price of a Big Mac is $4.07 in the United States, what are the implied exchange rates for these currencies?
What is the implied direct, or American, exchange rate between the U.S. dollar and Indian rupee?
$ 0.0190 per rupee (Round to four decimal places.)
What is the implied indirect, or European, exchange rate between the Indian rupee and U.S. dollar?
52.5799 rupees per $ (Round to four decimal places.)
What is the implied direct, or American, exchange rate between the U.S. dollar and Kuwaiti dinar?
$ 2.9281
per dinar (Round to four decimal places.)
What is the implied indirect, or European, exchange rate between the Kuwaiti dinar and U.S. dollar?
0.3415 dinars per $ (Round to four decimal places.)
What is the implied direct, or American, exchange rate between the U.S. dollar and Swedish krona?
$ 0.1184 per krona (Round to four decimal places.)
What is the implied indirect, or European, exchange rate between the Swedish krona and U.S. dollar?
Transcribed Image Text:Foreign exchange and commodity prices. While traveling in the following countries, you occasionally resort to U.S. food. You pay the following prices for a Big Mac:
India: 214 rupees
Kuwait: 1.43 dinars
Sweden: 34.54 kronor
Ukraine: 135 rubles
If the price of a Big Mac is $4.61 in the United States, what are the implied exchange rates for these currencies?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education