The camera you want to buy costs $495 in the U.S. How much will the identical camera cost in Canada if the exchange rate is C$1 = $.9128? Assume absolute purchasing power parity exists. O A. C$491 OB. C$542 O C. C$452 OD.C$527

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter27: Multinational Financial Management
Section: Chapter Questions
Problem 8P
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QUESTION 6
The camera you want to buy costs $495 in the U.S. How much will the identical camera cost in Canada if the
exchange rate is C$1 = $.9128? Assume absolute purchasing power parity exists.
O A. C$491
B. C$542
O C. C$452
O D. C$527
Transcribed Image Text:QUESTION 6 The camera you want to buy costs $495 in the U.S. How much will the identical camera cost in Canada if the exchange rate is C$1 = $.9128? Assume absolute purchasing power parity exists. O A. C$491 B. C$542 O C. C$452 O D. C$527
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