A Base Model Fitbit Costs $100 in the United States

Multiple Choice

A base model Fitbit costs $100 in the United States and €125 in Europe.What would the purchasing power parity theory's prediction of the dollar/euro exchange rate be based on this example?

A) $1 = €1.25
B) $1 = €1
C) $1 = €0.80
D) $1 = €0.90
E) $1 = €1.10