The current exchange for the Swedish krona is $0.1050. Inflation in Australia and Sweden is expected to be 4 and 9 per cent, respectively in the forthcoming year and 6 and 7 per cent, respectively in the following year. If purchasing power parity holds, what will be the value of the Swedish krona in two years?
a. $0.1024
b. $0.1111
c. None of the other answers is correct.
d. $0.1074
e. $0.0992