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24 November, 07:49

In France gasoline is 2.096 per liter. There are 3.78541178 liters per gallon. If the Euro is trading at 1.762 then the equivalent price per gallon is

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  1. 24 November, 08:06
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    equivalent price / gallon = 13.98 US$ / gallon

    Step-by-step explanation:

    Assuming that the exchange rate is 1.762 US$ / €, then

    thus

    equivalent price / gallon = liters/gallon * euros / liter * dollars/euro

    equivalent price / gallon = 3.78541178 liters / gallon * 2.096 € / liter * 1.762 US$ / € = 13.98 US$ / gallon

    equivalent price / gallon = 13.98 US$ / gallon

    if the actual price would be different from the equivalent, then there would be an arbitrage opportunity (profit with no risk)
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