Question: You are provided the follow set of data regarding Currency Values in a Tradable Commodity. Over Value/Under Value Currencies vs. USD Home Country Home Country

You are provided the follow set of data regarding Currency Values in a Tradable Commodity.

Over Value/Under Value Currencies vs. USD
Home Country Home Country Local Currency In US Dollars Actual Dollar Exchange Rate Implied PPP of the Dollar Under/Over Valuation against the USD
United States USD 5.51
Brazil BRL 16.9 4.4 ?? ?? ??
Sweden SEK 51 5.83 ?? 9.26 ??
Switzerland CHF 6.5 6.54 .99 1.18 ??
Hong Kong HKD 20 2.55 7.84 ?? ??

To determine the best arbitrage opportunity, you must first identify the most Overvalued and most Undervalued currencies in that commodity versus the U.S. Dollar.

The most (a) Overvalued and (b) Undervalued currencies versus the U.S. Dollar, based on this underlying commodity, are:

A: (a) CHF, (b) HKD

B: (a) BRL, (b) SEK

C: (a) HKD, (b) SEK

D: (a) SEK, (b) HKD

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