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You are expecting a payment of NKr450,000 three years from now. The risk-free rate of return...

You are expecting a payment of NKr450,000 three years from now. The risk-free rate of return is 3 percent in the U.S. and 4 percent in Norway. The inflation rate is 2.5 percent in the U.S. and 3 percent in Norway. Currently, you can buy NKr5.94 for $1. How much will the payment three years from now be worth in U.S. dollars?

Multiple Choice

  • $75,758

  • $81,511

  • $69,888

  • $73,530

  • $78,077

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