Cross Rate Given these two exchange rates, $$1=11\mathrm{.}60$ Mexican peso and $$1=0\mathrm{.}7549,$ compute the cross rate between the Mexican peso and the euro. State this exchange rate in

pesos and in euros.

Multiple Choice

$0\mathrm{.}0651$ euros, $15\mathrm{.}3610$ pesos

$0\mathrm{.}0862$ euros, $1\mathrm{.}3247$ pesos

$15\mathrm{.}3610$ euros, $\mathrm{.}0651$ pesos

$1\mathrm{.}3247$ euros, $0\mathrm{.}0862$ pesos

Purchasing Power Parity If the current spot rate between the U$.$S$.$ dollar and the Swedish krona was $$1=7\mathrm{.}6623$ krona, and if the inflation rate in the United States was $6\mathrm{.}2$ percent and

in Sweden it was $3\mathrm{.}2$ percent, then what would be the expected spot rate in one year?

Note: Round your calculations and answer to $4$ decimal places.

Multiple Choice

$$0\mathrm{.}0727$

$$7\mathrm{.}8922$

$$0\mathrm{.}1305$

$$0\mathrm{.}1344$