Question: Other things equal, and assuming efficient markets, if a Honda Accord costs $20750 in the U.S., and at an exchange rate of $1.81/E, how much

Other things equal, and assuming efficient markets, if a Honda Accord costs $20750 in the U.S., and at an exchange rate of $1.81/E, how much will the Honda Accord cost in Great Britain? ( 2 marks) The spot rate of U.S. dollars for Canadian dollars was $1.24/C$1. The inflation rate in Canada is 10% while the inflation rate in US is 5%. Based on the theory of Relative PPP, the expected spot (E(S)) exchange rate of U.S. dollars for Canadian dollars should be approximately: (2 marks) What is the value of Chinese yuan per Canadian dollar CNY/CAD cross rate given that CAD1.0447/\$ and CNY6.1109/\$? (2 marks)

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