You are expecting a payment of 500,000PLN 3 years from now. The risk-free rate of return is 4 percent in the U.S. and 2 percent in Poland. The inflation rate is 4 percent in the U.S. and 1 percent in Poland. Currently,you can buy 380PLN for 100USD. How much will the payment 3 years from now be worth in U.S. dollars?
A) $138,700
B) $138,900
C) $139,800
D) $142,300
E) $144,169
Correct Answer:
Verified
Q64: Suppose that the spot rate on the
Q65: Assume that ¥107.62 equal $1. Also assume
Q66: You are considering a project in Poland
Q67: The current spot rate is C$1.400 and
Q68: A risk-free asset in the U.S. is
Q70: The spot rate for the British pound
Q71: Today,you can exchange $1 for £.5428. Last
Q72: A new sweater costs 1,449.95 Russian rubles.
Q73: You just returned from some extensive traveling
Q74: Assume that you can buy 250 Canadian
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents