USD price of BicMac in South Africa and the US are $4.50 and $3.90 respectively. PPP implied exchange rate of South African Rand is 9.50 SAR per dollar. What is the extent of SAR undervaluation or overvaluation? (Calculate it in percentages)
a) 15.38% Overvaluation
b) 15.38% Undervaluation
c) 13.33% Overvaluation
d) 13.33% Undervaluation