If Wheat Costs Four Dollars Per Bushel in the United

Multiple Choice

If wheat costs four dollars per bushel in the United States and two British pounds per bushel in Great Britain, then in the presence of purchasing-power parity the exchange rate should be

A) $.50 per pound.
B) $1.00 per pound.
C) $2.00 per pound.
D) $8.00 per pound.