Purchasing power parity (PPP) theory states that exchange rates should equalize

Question

Purchasing power parity (PPP) theory states that exchange rates should equalize the prices of goods In any two countries. For the dollar Big Mac to be the same In both countries, a U.S. citizen would need to be able to convert $2.49 Into exactly 1.99 British pounds. To find exchange rate at which hamburger purchasing power Is the same In both countries, divide the price In the United States by the price In the United Kingdom: PPP Exchange Rate {U.S. dollars per British pound) = $2.49/1.99 British pounds = $1.25 per British pound In April 2002, the dollar price at a Big Mac In Switzerland was the dollar price of a Big Mac In the United States. What exchange rate would have equalized the dollar price of a Big Mac In the United States and Switzerland' That is, what is the PPP exchange rate tor Big Macs? If exchange rates had been adjusted to bring about Big Mac PPP between the dollar and the franc, the value of the franc would have against the dollar, and the value of the dollar would have against the franc.

Explanation / Answer

The question is incomplete. The information about US - Switzerland exchange rates are not given and only US British exchange rates are given. The question is about US - Switzerland exchange rates. Please provide the exchange rate table so that we can answer the question.

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