W Co is based in country W $($functional currency W$$)$ and it makes some purchases from the Eurozone denominated in euros $($EUR$).$ Purchase in $1$ years$$ time is expected to be EUR $100,000.$ The financial director of W Co is attempting to estimate the likely exchange rate in $1$ years$$ time, so that she can assess the likely value of the entity$$s foreign currency expenditure.

The spot rate of exchange is W$ $1=$ EUR $1\mathrm{.}9900.$ interest rates in the Eurozone and country W are expected to be $1\%$ and $8\%$ respectively over the next year.

What is the expected spot in $1$ years$$ time, using interest rate parity, and what is the expected value of the EUR sales when translated into W$$?$

Exchange rate Value of expenditure

A W$ $1=$ EUR $2\mathrm{.}1279$ W$ $212,792$

B W$ $1=$ EUR $2\mathrm{.}1279$ W$ $46,995$

C W$ $1=$ EUR $1\mathrm{.}8610$ W$ $186,100$

D W$ $1=$ EUR $1\mathrm{.}8610$ W$ $53,735$