Question: _ 13. Suppose spot exchange rate Ef$ = 85. If the price of a music compact disc (CD) is $18 in the US. and the

_ 13. Suppose spot exchange rate Ef$ = 85. If the price of a music compact disc (CD) is $18 in the US. and the same CD costs 1,900 yen in Japan, then the dollar price of CD3 sold in Japan is , which implies the law of one price a. $105.55; does not hold 1). $18; holds c. $10.5; does not hold d. $21; does not hold e. $22.35; does not hold

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