1 answer

Suppose that the price of a bottle of wine is €25 in Paris, and the wine...

Question:

Suppose that the price of a bottle of wine is €25 in Paris, and the wine is sold at $40 in New York. What will be the exchange rate if the law of one price holds?


Answers

Price of wine bottle in Paris = €25

Price of wine bottle in New York = $40

Law of one Price holds means that the Price of a commodity will be same globally with exchange rate factor.

Exchange Rate = Price in Paris/Price in New York

= €25/$40

= €0.625 per $ or $1.60 per €

.

Similar Solved Questions

1 answer
Multiple choice 4. How many points of inflection does the function f(x) = x + x2...
multiple choice 4. How many points of inflection does the function f(x) = x + x2 have? a) 7 b) 3 C) 2 d) 6 e) f) 1....
1 answer
Complete ledger entries and creat trail balance for these transactions. Transaction #1: On December 1, 2016,...
complete ledger entries and creat trail balance for these transactions. Transaction #1: On December 1, 2016, Mr. Donald Gray started Gray Electronic Repair Services by investing $10,000. Transaction #2: On December 5, Gray Electronic Repair Services paid registration and licensing fees for the ...
1 answer
How could you contribute to an interprofessional team and patient outcomes through nursing actions of compassion,...
how could you contribute to an interprofessional team and patient outcomes through nursing actions of compassion, advocacy, resilience, and evidence based practice?...
1 answer
2-18 financia) in formajon prodocdo company ended related to Udder a propietorship For the April 30,...
2-18 financia) in formajon prodocdo company ended related to Udder a propietorship For the April 30, 2014 IS GS Month follow net inuome for April Mark komin Ksy's with drawals 'during Əs,000 166,000 April Mark KoMinksy's copital 384,500 April 1 2019 A prepare a s tatement of owner&#...
1 answer
Reviews Practice Sheet Blood 34. A Labeling 2. Identify the blood cells. B. Completion Complete each...
Reviews Practice Sheet Blood 34. A Labeling 2. Identify the blood cells. B. Completion Complete each typing slide in the figure by indicating with pencil dots where agglutination Occurs 0 0 0 - 0 0 0 -...
1 answer
The following selected transactions relate to liabilities of Company A. Company A's fiscal year ends on...
The following selected transactions relate to liabilities of Company A. Company A's fiscal year ends on December 31. January 13 Negotiate a revolving credit agreement with Company B that can be renewed annually upon bank approval. The amount available under the line of credit is $10 million at t...
1 answer
Question Help 10.3.17-T A credit score is used by credit agencies (such as mortgage companies and...
Question Help 10.3.17-T A credit score is used by credit agencies (such as mortgage companies and banks) to assess the creditworthiness of individuals. Values range from 300 to 850, with credit score over 700 considered to be a quality credit risk. According to a survey, the mean credit score is 704...
1 answer
Which car has the largest acceleration? Which car has the largest acceleration? Goes from 0 m/sm/s...
Which car has the largest acceleration? Which car has the largest acceleration? Goes from 0 m/sm/s to 5.0 m/sm/s in 2.0 ss Goes from 0 m/sm/s to 3.8 m/sm/s in 1.0 ss Goes from 0 m/sm/s to 21 m/sm/s in 7.0 ss Goes from 0 m/sm/s to 7.5 m/sm/s in 5.0 ss...
1 answer
Please explain the work for both questions please 1. Predict the major organic product for each...
please explain the work for both questions please 1. Predict the major organic product for each of the following elimination reactions, and indicate whether each one occurs via the E1 or the E2 mechanism. Be sure to clearly indicate the proper stereochemical relationships between groups (if appropri...
1 answer
To keep track of patients and clinician, etc., a private hospital uses the table structure shown...
To keep track of patients and clinician, etc., a private hospital uses the table structure shown in Table 1 Patient Report a. Given that information, draw the dependency diagram. Make sure that you label the transitive and/or partial dependencies. (5 Marks) Patient Report nameClini 160 104 310 ...
1 answer
Describe the process of DNA replication. (Your answer should include the following: replication fork, semiconservative replication,...
Describe the process of DNA replication. (Your answer should include the following: replication fork, semiconservative replication, replication fork, DNA gyrase, helicase, primase, DNA polymerase, DNA ligase, leading strand, lagging strand, continuous replication, non-continuous replication, and Oka...
1 answer
A sample of an ideal gas has a volume of 3.55 L at 10.20 °C and...
A sample of an ideal gas has a volume of 3.55 L at 10.20 °C and 1.90 atm. What is the volume of the gas at 20.60 °C and 0.994 atm?...
1 answer
Gravitational Potential Energy; Variable Gravitational Force
A 15.00 kg block starts from rest at the top of a 25.0 m long 30.0° incline. Its kinetic energy at the bottom of the incline is 1837.5 J. How much work is done byfriction?...
1 answer
On December 31, 2016, when its Allowance for Doubtful Accounts had a credit balance of $1,500....
On December 31, 2016, when its Allowance for Doubtful Accounts had a credit balance of $1,500. Leeds Company estimates that 6% of its accounts receivable balance of $95,000 will become uncollectible. On March 3, 2017, Leeds Company determined that Megan Jost's account of $950 was uncollectible. ...
1 answer
CONCEPTUAL REVIEW MATERIALS Questions 1. What is a protein fingerprint? 2. Which is larger, a strand...
CONCEPTUAL REVIEW MATERIALS Questions 1. What is a protein fingerprint? 2. Which is larger, a strand of DNA or a single protein? 3. Does each type of cell make the same type of proteins? Why or why not? 4. Why do the proteins flow downward through the gel during electrophoresis? 5. Why do bubbles fo...
1 answer
25) Herd immunity describes A) the process of immunizing animals so that people do not acquire...
25) Herd immunity describes A) the process of immunizing animals so that people do not acquire zoonotic diseases. B) the temporary immunity an infant receives from its mother during gestation and from breastfeeding. 2 (Cthe protection conferred to non-immunized people when a sizable portion of the r...
1 answer
5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios,...
5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Spandust Industries Inc. and make...
1 answer
Defining Value-Based Care
Defining Value-Based Care...
1 answer
How much fiber does the typical American get and why isn’t this number higher?
How much fiber does the typical American get and why isn’t this number higher?...