Consider the following spot exchange rates for the British pound,the Japanese yen,the euro and the Swedish krona: USD1.60 = GBP1,JPY105 = USD1,USD0.625 = EUR1,and SEK6.2 = USD1.If gold sells for $290 per ounce in the United States,which one of the following prices for 1 ounce of gold seems to violate the law of one price?
A) £181.25
B) ¥30,450
C) €405
D) kr1,798
Correct Answer:
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