Suppose the Current Spot Rate for the Norwegian Kroner Is

Suppose the current spot rate for the Norwegian kroner is $1 = NKr6.7119.The expected inflation rate in Norway is 4 percent and in the U.S.3 percent.A risk-free asset in the U.S.is yielding 4.5 percent.What approximate real rate of return should you expect on a risk-free Norwegian security?

A) 1.0 percent
B) 1.5 percent
C) 2.0 percent
D) 2.5 percent
E) 3.0 percent