Question: Problem 4 (6 points) Coffee Bean and Tea Leaf (CBTL) started operating in Malaysia in May, 2008. The price of an Americano in Kuala Lumpur

Problem 4 (6 points) Coffee Bean and Tea Leaf (CBTL) started operating in Malaysia in May, 2008. The price of an Americano in Kuala Lumpur is RM8. The same Americano can be purchased in Miami for $3. The exchange rate between Malaysian Ringgit and U.S dollar is RM4.29/$ According to purchasing power parity, is the Malaysian ringgit overvalued or undervalued

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