A firm has the following forecast for the peso's value in one year: Possible Percentage Change Probability -1% 10% 2% 50% 4% 40% The annual interest rate on the peso is 7%. The expected value of the effective financing rate from a U.S. firm's perspective is about: Select one: O a. 9.631%. O b. 9.750%. c. 9.500%. O d. 9.675%.

Q&A Education