Question: Suppose the current exchange rate between USD and MSN is: MXN/USD - 8.33. At this time, the rental price of a 1,000 sq ft office

Suppose the current exchange rate between USD and MSN is: MXN/USD

Suppose the current exchange rate between USD and MSN is: MXN/USD - 8.33. At this time, the rental price of a 1,000 sq ft office space in downtown LA is USD 6,000 while it is MXN 48,000 in downtown Mexico City. Based on the current spot rate, estimate the percentage over or undervaluation of MXN against the USD. +4.125% -3.962% -4.125% 43.962%

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