You Plan to Purchase US $1,000 Worth of Panama Stock

You plan to purchase US $1,000 worth of Panama stock for a year. The current spot rate is one US dollar for one Balboa in local Panama. If a 10% annual growth is expected from the Panama stock market, how much will this investment be worth at the end of the year?

A) US $1,200
B) 1,100 Balboas
C) US $1,100
D) 1,000 Balboas
E) Both (B) and (C)