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 8%. The expected value of the effective financing rate from a U.S. firm's perspective is about:

Select one:

a. 10.631%.

b. 10.500%.

c. 10.700%.

d. 10.753%.