2-5. The Mexican economy is predicted to average double-digit inflation over the next two years at 10 percent per year. The inflation forecast for the United States for the same period is 4 percent per year. If the current exchange rate is $0.091/peso, what is the expected exchange rate two years from now? a. $0.08604/peso b. $0.08134/peso c. $0.10180/peso d. $0.09625/peso 3. Open Question: (/5) You have the opportunity to invest $100,000 for one year in the U.S. at 4%. Ruritanian peso deposits are offering 35%. All other things being equal, the spot rate is RUP 30 per $1. The 1 year forward rate is RUP 40 per $1. Which bond will you prefer and why? Ignore transaction costs