Suppose the Current Spot Rate for the Norwegian Kroner Is

Suppose the current spot rate for the Norwegian kroner is $1 = NKr6.6869.The expected inflation rate in Norway is 6 percent and in the U.S.it is 3.1 percent.A risk-free asset in the U.S.is yielding 4 percent.What risk-free rate of return should you expect on a Norwegian security?

A) 3.5 percent
B) 4.0 percent
C) 4.5 percent
D) 5.0 percent
E) 6.9 percent