U Question 1 15 pts The Euro (EUR) is currently trading at 1.17 USD/1 EUR on October 14, 2020. The inflation rate is expected to be 1% on an annual basis in the EC. Inflation is 2% per annum in the US during the same period. A. Find the exchange rate expected in one year on March 1, 2021 if PPP held. B. You expect to be on vacation in Nuremberg, Germany on October 14, 2021, one year from now. You hope to buy a a basket of 20 prune men at the marketplace. The current cost in USD is 100 per basket. Assuming that PPP holds, what is the cost of the basket one year from now in USD? (Assume the vendor passes along the full inflation costs to you.) The respective answers for A. and B. are: $1.182/EUR, $87.18 O $1.158/EUR, $87.18 O $1.182/EUR. $86.32 $1.158/EUR, $86.32