Multiple Choice
Use the table for the question(s) below.
Consider the following prices from a McDonald's Restaurant:
-A McDonald's Big Mac value meal consists of a Big Mac, a large Coke and a large fries. Assuming that there is a competitive market for McDonald's food items, at what price must a Big Mac value meal sell to insure the absence of an arbitrage opportunity and uphold the Law of One Price?
A) $5.47
B) $5.17
C) $5.37
D) $5.072
Correct Answer:
Verified
Correct Answer:
Verified
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