You are expecting a payment of 450,000PLN three years from now.The risk-free rate of return is 3 percent in the U.S.and 4 percent in Poland.The inflation rate is 2.5percent in the U.S.and 3 percent in Poland.Currently,you can buy 277PLN for 100USD.How much will the payment three years from now be worth in U.S.dollars?
A) $154,751
B) $157,677
C) $219,511
D) $1,317,269
E) $1,369,888
Correct Answer:
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