4.    Suppose, the INR65.4015/USD in the FX Market.  The selling price of the basic SONY LED TV is USD 75 in US, while in India the same TV is sold for 5,300 INR. What should be the forward rate USD/INR to valid the PPP? If the PPP is not valid what are the necessary steps to get the equilibrium in US and Indian markets?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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4.    Suppose, the INR65.4015/USD in the FX Market.  The selling price of the basic SONY LED TV is USD 75 in US, while in India the same TV is sold for 5,300 INR. What should be the forward rate USD/INR to valid the PPP? If the PPP is not valid what are the necessary steps to get the equilibrium in US and Indian markets?

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