Suppose the 1-Year Risk-Free Rate of Return in the U

Suppose the 1-year risk-free rate of return in the U.S. is 2% and the 1-year risk-free rate of return in Mexico is 8%. The current exchange rate is 1 peso = U.S. $.051. A 1-year future exchange rate of ________ for the peso would make a U.S. investor indifferent between investing in the U.S. security and investing in the Mexican security.

A) 1.6037
B) 0.02001
C) 1.7500
D) 0.02300
E) 0.01250