Question: Question 5 According to the Big Mac Index, the implied PPP exchange rate is Ps8.50/$ but the actual exchange rate is Ps10,80/5. Thus, at current

Question 5 According to the Big Mac Index, the implied PPP exchange rate is Ps8.50/$ but the actual exchange rate is Ps10,80/5. Thus, at current exchange rates the peso appears to be by undervalued: approximately 21% overvalued; approximately 27% overvalued approximately 21% undervalued: approximately 27% Question 3 1 pts The current U.S. dollar-yen spot rate is 125/$. If the 90-day forward exchange rate is 127/5 then the yen is selling at a per of annum discount: 6.30% discount: 1.57% premium: 1.57% premium; 6.30%

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