Year-end the exchange rate should be approximately

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Reference no: EM13731895

The spot rate for the Argentine peso is $0.3600 per peso. Over the year, inflation in Argentina is 10 percent and U.S. inflation is 4 percent. If purchasing power parity holds, at year-end the exchange rate should be approximately ______________ dollars per peso.

A. 0.2987

B. 0.3614

C. 0.2875

D. 0.3384

E. 0.3015

Reference no: EM13731895

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