PART 7. ARBITRAGE Get your knapsack: it's time to move some Big Macs. $1.22 Exchange rate: $CAD per USD $6.41 Price in Canadian dollars of a Big Mac in Montreal $5.30 Price in US dollars of a Big Mac in Burlington, Vermont 2,800 Number of Big Macs you will arbitrage 1. What does a Big Mac cost in Canadian dollars in Burlington? Mark value: 1 Answer type: Real number 2. The Canadian dollar is overvalued according to Purchasing Power Parity. Mark value: 1 Answer type: True False 3. What percentage change in the value of the Canadian dollar is predicted by Purchasing Power Parity? Mark value: 1 Answer type: Real number 4. To arbitrage Big Macs, you'll have to borrow them in Burlington and sell them in Montreal. Mark value: 1 Answer type: True or False 5. What will be your arbitrage profit? Mark value: 1 Answer type: Integer