I know that MXN.USD. 05 and the same baseball bat costs in the U.S. and 350 Pesos in…

I know that MXN.USD. 05 and the same baseball bat costs
in the U.S. and 350 Pesos in Mexico. Based on these data points, What would any reasonable business person do? NOTE: Pay attention to details and consider all parts of the answer choices below. The question is intended to have you analyze, and make sense of multiple data points, similar to what is required of any businessperson in the real-world. Please select the best answer choice below.
A. Any reasonable businessperson would go down to Mexico, sell a bunch of U.S. dollars and buy Mexico Pesos. With these Pesos, the businessperson would walk into the Mexican baseball relail store and buy a bunch of bats for 350 Pesos, then return to the U.S. and sell these bats for less than
. At MXN/USD .05 and where the bat costs
in the U.S., the U.S. businessperson is expecting to pay 600 Pesos for the baseball bats in Mexico. If the U.S. businessperson buys the baseball bats in Mexico for 350 Pesos, it only costs the U.S. bul pessperson
per bat in U.S. dollar terms.
As a U.S. businessperson, I would repeat this process. I would also realize that eventually, we would see a correction in the market. The Mexican retailer will most likely raise his/her price of the baseball bat in Mexico, the Pesos would appreciate in value and the U.S, dollar would depreciate in value.
B. Any reasonable businessperson would go down to Mexico, sell a bunch of U.S. dollars and buy Mexico Pesos. With these Pesos, the businessperson would walk into the Mexican baseball retail store and buy a bunch of bats for 350 Pesos, then return to the U.S. and sell these bats for more than
. At MXN/USD .05 and where the bat costs
in the U.S., the U.S. businessperson is expecting to pay 900 Pesos for the baseball bats in Mexico. If the U.S. businessperson buys the baseball bats in Mexico for 350 Pesos, it only costs the U.S, businessperson
per bat in U.S. dollar terms.
As a U.S. businessperson, I would repeat this process. I would also realize that eventually, we would see a correction in the market. The Mexican retailer will most likely raise hisher price of the baseball bat in Mexico, the Pesos would appreciate in value and the U.S. dollar would also appreciate in value.
C. Any reasonable businessperson would go down to Mexico, sell a bunch of U.S. dollars and buy Mexico Pesos. With these Pesos, the businessperson would walk into the Mexican baseball retail store and buy a bunch of bats for 350 Pesos, then return to the U.S. and sell these bats for more than
. AI MXNIUSD. 05 and where the bat costs
in the U.S., the U.S. businessperson is expecting to pay 30 Pesos for the baseball bats in Mexico. If the U.S. businessperson buys the baseball bats in Mexico for 350 Pesos, it only costs the U.S. businessperson
per bat in U.S. dollar terms.
As a U.S. businessperson, I would repeat this process. I would also realize that eventually, we would see a correction in the market. The Mexican retailer will most likely raise hisher price of the baseball bat in Moxico, the Pesos would depreciate in value and the U.S. dollar would appreciate in value.