You are expecting a payment of Can$138,000 two years from now. Assume the risk-free rate of return is 2.7 percent in Canada and 3.1 percent in the U.S. Also assume the current exchange rate is Can$1.2903 = $1. Approximately how much will the payment two years from now be worth in U.S. dollars?

A) $108,319
B) $106,101
C) $107,813
D) $107,381
E) $108,169


C) $107,813

Business

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