The Economist invented the Big Mac

Index which compares the cost of producing a hamburger across different

countries. The implied PPP exchange rate based on the Big Mac Index is Mexican

Pesos 8.50 per dollar. However, the current exchange rate between the U.S and

Mexico is given as Mexican Peso 10.80 per dollar. What does this suggest about

the value of the Pesos according to the law of one price and PPP?