Multiple Choice Questions in International Finance: exchange rate, forecasts, speculation with currency futures,
1. If the current exchange rate is 113 Japanese yen per U.S. dollar, the price of a Big Mac hamburger in the United States is $3.41, and the price of a Big Mac hamburger in Japan is 280 yen, then other things equal, the Big Mac hamburger in Japan is ________. A. correctly priced B. under priced C. over priced D. no