6.5) Other things equal, and assuming efficient markets, if a Honda Accord costs $21,375 in the U.S. then at an exchange rate of $1.23/, the Honda Accord should cost in France 6.5) 6.6) One year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1. Since that time the rate of inflation in the U.S. has been 3% less than that in Canada. Based on the theory of Relative PPP, the current spot exchange rate of U.S. dollars for Canadian dollars should be approximately 6.6) 6.7) Phillips NV produces DVD players and exports them to the United States. Last year the exchange rate was $1.25/euro and Phillips charged 120 euro per player in Euroland and $150 per DVD player in the United States. Currently the spot exchange the degree of pass through by Phillips NV on their DVD players? rate is $1.30/euro and Phillips is charging $155 per DVD player. What is 6.7) 6.8) Assume the current U.S. dollar-British spot rate is 0.6993E/$. If the current nominal one-year interest rate in the U.S. is 3% and the comparable 90 days? rate in Britain is 4%, what is the approximate forward exchange rate for 6.8)