Question: It is given that the price level in HK and UK are 100 and 10.8 respectively. If the currencies are now traded at HK$9.5/pounds, what

It is given that the price level in HK and UK

It is given that the price level in HK and UK are 100 and 10.8 respectively. If the currencies are now traded at HK$9.5/pounds, what is the predicted the nominal exchange rate (Correct to 3 decimal places) according to the Purchasing Power Parity? Explain your calculation

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