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What should dollars sell in pounds per dollar

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Exchange rate: If British pounds sell for $1.50 (US)  per pound, what should dollars sell in pounds per dollar?

Currency appreciation: Suppose the 1 Danish krone could be purchased in the foreign exchange market for 14 U.S. cents today. If the krone appreciated 10 percent tomorrow against the dollar, how many krones would a dollar buy tomorrow?

Purchasing power parity: In the spot market 7.8 Mexican peos can be exchanged for 1 U.S. dollar. A compact disc cost $15 in the United States . If purchasing power parity (PPP) holds, what would be the price of the same disc in Mexico?

Reference no: EM132444729

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