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Ch 18- Assignment - Multinational Financial Management i The theory of purchasing power parity (PPP) states that in the long-run exchange rates between two countries adjusts so that the price of an iden good is the same when expressed in the same currency. A gaming console sells for $175.23 in the United States. The exchange rate between the U.S. dollar and the Swiss franc (SFr) is $0.8145 per Swis A- franc. Assuming that PPP holds true, how much does the same gaming console cost in Switzerland? SFr 225.90 SFr 215.14 SFr 247.41 SFr 258.17 N

Ch 18- Assignment - Multinational Financial Management i The theory of purchasing power parity (PPP) states that in the long-run exchange rates between two countries adjusts so that the price of an iden good is the same when expressed in the same currency. A gaming console sells for $175.23 in the United States. The exchange rate between the U.S. dollar and the Swiss franc (SFr) is $0.8145 per Swis A- franc. Assuming that PPP holds true, how much does the same gaming console cost in Switzerland? SFr 225.90 SFr 215.14 SFr 247.41 SFr 258.17 N

International Financial Management
International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates
Section: Chapter Questions
Problem 32QA
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Ch 18- Assignment - Multinational Financial Management i The theory of purchasing power parity (PPP) states that in the long-run exchange rates between two countries adjusts so that the price of an iden good is the same when expressed in the same currency. A gaming console sells for $175.23 in the United States. The exchange rate between the U.S. dollar and the Swiss franc (SFr) is $0.8145 per Swis A- franc. Assuming that PPP holds true, how much does the same gaming console cost in Switzerland? SFr 225.90 SFr 215.14 SFr 247.41 SFr 258.17 N
Transcribed Image Text:Ch 18- Assignment - Multinational Financial Management i The theory of purchasing power parity (PPP) states that in the long-run exchange rates between two countries adjusts so that the price of an iden good is the same when expressed in the same currency. A gaming console sells for $175.23 in the United States. The exchange rate between the U.S. dollar and the Swiss franc (SFr) is $0.8145 per Swis A- franc. Assuming that PPP holds true, how much does the same gaming console cost in Switzerland? SFr 225.90 SFr 215.14 SFr 247.41 SFr 258.17 N
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