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Part III. Answer the following questions as much detail as possible within the space provided. undervalued or overvalued against the U.S.dollar. A Big Mac costs CN25 in China and $5.58 in the United States. The implied exchange rate is CN7.143/$. 1 How much is the price of Big Mac in China(in U.S. dollars)? 2) What is the actual of price of yuan in U.S. dollar ($/CN)? 3) What is the implied ppn (the purchasing power parity) price of yuan in U.S. dollar ($/CN)? 4) Is the yuan overvalued or undervalued? Will the yuan appreciate against the dollar or depreciate in the long run? Explain. ( 2.Suppose that is=0.10,i=0.15 for one month,and the spot exchange rate e =$2.20/.Your expectation of the exchange rate is ee=$2.00/. 1) What would you do if you have $1,000? Explain your strategy. Use [9 -- 3] for your calculation and explain. ( ( 2) If you decided to use ef=$2.00/ instead, what difference does it make? Explain. (

          Part III. Answer the following questions as much detail as possible within the space provided.
undervalued or overvalued against the U.S.dollar.
A Big Mac costs CN25 in China and $5.58 in the United States. The implied exchange rate is CN7.143/$.
1 How much is the price of Big Mac in China(in U.S. dollars)?
2) What is the actual of price of yuan in U.S. dollar ($/CN)?
3) What is the implied ppn (the purchasing power parity) price of yuan in U.S. dollar ($/CN)?
4) Is the yuan overvalued or undervalued? Will the yuan appreciate against the dollar or depreciate in the long run? Explain.
(
2.Suppose that is=0.10,i=0.15 for one month,and the spot exchange rate e =$2.20/.Your expectation of the exchange rate is ee=$2.00/. 1) What would you do if you have $1,000? Explain your strategy. Use [9 -- 3] for your calculation and explain. (
(
2) If you decided to use ef=$2.00/ instead, what difference does it make? Explain.
(

part iii answer the following questions as much detail as possible within the space provided undervalued or overvalued against the usdollar a big mac costs cn25 in china and 558 in the unite 15977

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