You are a U.S. investor trying to calculate the present value of a e17 million cash inflow that will occur one year in the future. The spot exchange rate is S=$1.114/e, and the foward rate is F-$1.157/e. You estimate that the appropriate dollar discount rate for this cash flow is 8% and the appropriate euro discount rate is 4%.

a. what is the present value of the e17 million cash inflow computed by first discounting the euro and tehn converting it into dollars?

The present value of the e17 million cash inflow is $___million. (Round to two decimal places.)

b. What is the present value of the e17 million cash inflow computed by first converting the cash flow into dollars and tehn discounting it?

The present value of the e17 million cash inflow is $___million. (Round to two decimal places.)

c. What can you conclude about whether these marketsare internationally integrated, based on your answers to (a) and (b)?

() a. No, the markets are not internationally integrated because the answers to (a) and (b) are essentially the same.

() b. No, the markets are not internationally integrated because the answers to (a) and (b) are very different.

() c. Yes, the markets are internationally integrated because the answers to (a) and (b) are essentially the same.

() d. Yes, the markets are internationally integrated because the answers to (a) and (b) are very different.