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Assume the annual inflation rates in USA and Malaysia are expected to be 5% and 90%, respectively over the next year. If the current spot

Assume the annual inflation rates in USA and Malaysia are expected to be 5% and 90%, respectively over the next year. If the current spot rate for the Malaysian ringgit is 3342.62 riels per dollar, which of the following is the best estimate of the ringgits future spot rate one year from today:

a. 0.000170 per $

b. 0.000165 per $

c. $ 6048.55

d. $ 6053.27

(please show solution/calculation)

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