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:
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