A pair of running shoes costs HK$588 in Hong Kong, but C$97.85 in Canada. If goods must be sold with one price, what is the spot rate? Ignore transportation costs for simplicity.
A) C$0.2535 = HK$1
B) C$0.3396 = HK$1
C) C$0.4265 = HK$1
D) C$0.1664 = HK$1
E) C$0.6029 = HK$1
Correct Answer:
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