Regarding q1 how much cheapermore expensive is the european, Financial Management

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Regarding q1 how much cheapermore expensive is the european

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1. A basket of goods costs $8,500 in the U.S. Exact same goods basket costs €7,200 in Europe. The exchange rate is €.8144/$.

A. What is the over/undervaluation of the €?

B. What is the over/undervaluation of the $?

2. Regarding Q1, how much cheaper/more expensive is the European basket (in dollars) than the dollar cost of the U.S. basket? (in percentage terms)

3. Regarding Q1, how much cheaper/more expensive is the U.S. basket than the European basket? (in percentage terms)

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