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The current Price of Honda CR-V EX-L Hybrid in Tokyo is ¥2,250,000. The current spot rate...

The current Price of Honda CR-V EX-L Hybrid in Tokyo is ¥2,250,000. The current spot rate (¥/$) is 108.75. Inflation rates in US are 2.2% and 0.5% in Japan. One year from now, what would be the dollar expected price of Honda CR-V EX-L Hybrid?

Select one:

a. None of the Above

b. $20,690

c. $21,145

d. $20,345

e. $20,794

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Answer #1

The current price is ¥2,250,000, the spot rate is 108.75¥/$. The inflation rate in US is 2.2% and in Japan it is 0.5%. Use th

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