9/29/17

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ECON 522Sept 29, 2017

9/29/17

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Compare PricesWhich would be cheaper to purchase?

Nominal Price

US $ Price

101.34 USD

UK Price

101.78 GBP

EU Price

74.99 EUR

Compare PricesNominal Price

Currency Price in USD

Book Price in USD

US $ Price

101.34 USD 1 USD = 1 USD 101.34 USD

UK Price

101.78 GBP 1 GBP = 1.34 USD 136.39 USD

EU Price

74.99 EUR 1 EUR = 1.183 USD 88.71 USD

9/29/17

3

Compare PricesNominal Price

Currency Price in USD

Book Price in USD

Implied Real Exchange Rate

US $ Price

101.34 USD 1 USD = 1 USD 101.34 USD 1

UK Price

101.78 GBP 1 GBP = 1.34 USD 136.39 USD .743

EU Price

74.99 EUR 1 EUR = 1.183 USD 88.71 USD 1.142