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P18-1
Foreign exchange and commodity prices.
While traveling in the
following countries, you see twenty-ounce plastic bottles of Coca-
Cola. You know the price in the United States for a Coke is
$0.990.99,
but the countries have the following prices:
Canada:
C$1.54
Japan:
¥155
England:
£0.46
European Union:
euro€0.89
What is the implied exchange rate for U.S. dollars and these four
currencies?