An investment firm is looking at two options, one domestic in the US and another in Europe. The firm plans to invest $155,000. In the US, the current interest rate is 4.35%, while in Europe it is 6.75%. The firm believes that the future expected exchange rate in one year will be $1 US buys 2.10 Euros. If the firm claims that the future value in one year of both investments is the same, then this implies the exchange rate today must be Et = = In the US, a big mac cost $4.55. If you buy the same big mac in Norway, it will cost 14.56 Kroner. Suppose that the current exchange rate is $1 US buys 2.85 Kroner. According to the law of one price, the exchange rate should be that $1 US buys _____ Kroner, and hence, we can predict that over time, the US dollar should against the Kroner. 0 ; 2.75; appreciate 2.75; depreciate 3.2; appreciate 3.2; depreciate