On May 27, 2016, before the Brexit vote occurred in the UK, the pound was trading at 1 = 1.46 USD. A company in the US selling a device that allows teams to track the movement of players had priced the system at $3,000,000 and was also selling the device at 2.1 million in the UK.

1. Based on this information, calculate the real exchange rate for this device.
2. Based on the real exchange rate that was just calculated, is the product cheaper or more expensive in the US?
3. On October 28, 2016, a few months after the Brexit vote, the value of the pound plummeted, ending trading at 1 pound = 1.22 USD. Assuming no change in the price of the device, calculate the new real exchange rate.
4. Comparing the real exchange rate from June to the one in October, how has the value of the product changed? Is this good or bad for the company?
5. Considering that customers would see the change in the value of the product, the company has decided that they are going to adjust the UK price using the real exchange rate from June to restore the rate to 0.9874. Please calculate the new UK price. Assume that the exchange rate is still 1 pound to 1.22 USD.
6. Reconsidering, the company has now decided that they would like the price in the US to be equivalent to that in the UK, and thus it should have a real exchange rate of 1. Based on this, calculate the new UK price, assuming the US price is $3,000,000 and the exchange rate is 1 pound to 1.22 USD.