A television costs $750 in the United States. The same televisioncosts 637.5 euros. If purchasing power parity holds, what is the spot exchange ratebetween the euro and the dollar?

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
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A television costs $750 in the United States. The same television
costs 637.5 euros. If purchasing power parity holds, what is the spot exchange rate
between the euro and the dollar?

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