A U.S. firm must pay cash flows of £500,000 in one year. Today the exchange rate is $1.70 = £1. The inflation rate in Britain is 1.9% and in the U.S. it is 2.1%. Compute the expected exchange rate in one year and use it to compute the amount of dollars you must pay in one year. (A) $851,700 (B) $867,000 (C) $782,750 (D)$850,000