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Which one of the following formulas correctly describes the relative purchasing power parity relationship? A....

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Accounting

Which one of the following formulas correctly describes the relative purchasing power parity relationship?

A. E(St) = S0[1 + (hFC - hUS) t

b. E(St) = S0[1 - (hFC - hUS)t

c. E(St) = S0[1 + (hUS+ hFC)t

d. E(St) = S0[1 - (hUS - hFC)t

e. E(St) = S0[1 + (hUS - hFC)t

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