Pro Corp, a U

Multiple Choice

Pro Corp, a U.S.-based MNC, uses purchasing power parity to forecast the value of the Thai baht (THB) , which has a current exchange rate of $0.022. Inflation in the U.S. is expected to be 3% during the next year, while inflation in Thailand is expected to be 10%. Under this scenario, Pro Corp would forecast the value of the baht at the end of the year to be:

A) $0.023.
B) $0.021.
C) $0.020.
D) None of the above