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You are expecting a payment of C$120,000 two years from now. The risk-free rate of return is 3.62 percent in the U.S. and 4.21 percent
You are expecting a payment of C$120,000 two years from now. The risk-free rate of return is 3.62 percent in the U.S. and 4.21 percent in Canada. The inflation rate is 2 percent in the U.S. and 3 percent in Canada. Suppose the current exchange rate is C$1 = $.9422. How much will the payment three years from now be worth in U.S. dollars? O A) $111,086 B) $90,775 C) $102,414 OD) $108,851 E) $88,202
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