A McDonald's Big Mac value meal consists of a Big Mac sandwich, large Coke, and a large fries. Assuming that there is a competitive market for McDonald's food items,
Big Mac Sandwich $2.81
Large Coke $1.49
Large Fries $1.14
at what price must a Big Mac value meal sell to insure the absence of an arbitrage opportunity and uphold the Law of One Price?
A) $4.08
B) $4.62
C) $5.44
D) $6.80
Answer: C
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