Fill in the Values for the Implied Exchange Rate in the Various

Essay

Fill in the values for the implied exchange rate in the various currencies per US dollar in the following table.Assume that the Big Mac burger sells for $3.06 in the United States.Explain whether the US dollar is overvalued or undervalued relative to each currency and predict what will happen in the future to each exchange rate.
$$\begin{array} { | l | l | l | l | } \hline & \text { Big Mac Price } & \begin{array} { l } \text { Implied Exchange Rate } \\\text { (Foreign Currency per } \\\text { US dollars) }\end{array} & \begin{array} { l } \text { Actual Exchange Rate } \\\text { (Foreign Currency per } \\\text { US dollars) }\end{array} \\\hline \text { Hong Kong } & \text { 12 HKdollars } & & 7.76 \\\hline \text { Switzerland } & \text { 6.29 Swiss francs } & & 1.23 \\\hline \text { Mexico } & \text { 23.9 pesos } & &10.6 \\\hline \text { The United Kingdom } & 1.86 \text { pounds } & & 0.67 \\\hline\end{array}$$ _____________________________________________________________________________________________
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