If the Law of One Price Holds and the Price

question 30

Multiple Choice

If the law of one price holds and the price of an apple in the U.S.is $1.50 while the price of an apple in Japan is ¥174.00,then what should the spot exchange rate for ¥/$ be?

• A) .0086
• B) .5747
• C) 116.00
• D) none of the above

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