Assume that interest rate parity holds. The US five-year interest rate is 5% annualized, and the Mexican five-year rate is 8% annualized. Today's spot rate of the Mexican peso is $.20. What is the approximate five-year forecast of the peso's spot rate if the five-year forward rate is used as forecast?
a. $.131
b. $.226
c. $.262
d. $.140
e. $.174