Assume the rate of change of the dollar-pound exchange rate is normally distributed, the spot rate is $1.5/£, the expected value of the rate of change is 5% and the standard deviation of the rate of change is 2%. There is a 95.45% probability that the future exchange rate ($/£) will be between: Select one: OA. 1.515 and 1.635 OB. 1.5435 and 1.6065 O C. 1.545 and 1.605 D. 1.4805 and 1.6695 E. 1.512 and 1.638

Assume the rate of change of the dollar-pound exchange rate is normally distributed, the spot rate is $1.5/£, the expected value of the rate of change is 5% and the standard deviation of the rate of change is 2%. There is a 95.45% probability that the future exchange rate ($/£) will be between: Select one: OA. 1.515 and 1.635 OB. 1.5435 and 1.6065 O C. 1.545 and 1.605 D. 1.4805 and 1.6695 E. 1.512 and 1.638

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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