Starbucks $($Croatia$).$ Starbucks opened its first store in Zagreb, Croatia in October $2010.$ In Zagreb, the price of a tall vanilla latte is

$25\mathrm{.}72$ Croatian kuna $($kn$).$ In New York City, the price of a tall vanilla latte is $$2\mathrm{.}64.$ The exchange rate between the Croatian kuna and

U$.$S$.$ dollar is kn$5\mathrm{.}6288=$$$1\mathrm{.}00.$ According to purchasing power parity, is the Croatian kuna overvalued or undervalued?

The percentage of overvaluation or undervaluation is $\%.($Round to two decimal places.$)$

According to purchasing power parity, the Croatian kuna is

$.($Select from the drop$-$down menu.$)$