A company orders components from Japan for its game player. The prices for the items that it

Question:

A company orders components from Japan for its game player. The prices for the items that it orders are in Japanese yen. When the products are delivered, it must convert dollars into yen to pay the Japanese producer. When its next order is delivered (and must be paid for), it believes that the of dollars to yen will take on the following values with the shown probabilities.

(a) Draw the probability distribution of a random variable X that denotes the exchange rate on the day of the delivery. Describe the shape of this distribution.
(b) If the current exchange rate is 120 ¥/$, what is the probability that the exchange rate will be higher on the delivery date?
(c) What is the expected value of the exchange rate on the date of the delivery?
(d) If the company exchanges $100,000 on the delivery date, how many yen can it expect to receive?
(e) What is the expected value in dollars of ¥10,000 on the delivery date?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...