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Determine what is spot exchange rate between euro and dollar

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Reference no: EM132596978

Purchasing Power Parity

Question 1: A computer costs $480 in the United States. The same model costs 800 euros in France. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar? Do not round intermediate calculations. Round your answer to two decimal places.

Exchange Rate

Question 2: If euros sell for $1.31 (U.S.) per euro, what should dollars sell for in euros per dollar? Round your answer to two decimal places.

Reference no: EM132596978

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