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Maston Corporation has forecasted the value of the Russian ruble as follows for the next year: Percentage Change Probability of Occurrence -5% 20% -3% 50%

Maston Corporation has forecasted the value of the Russian ruble as follows for the next year:

Percentage Change Probability of Occurrence

-5% 20%

-3% 50%

1% 30%

If the Russian interest rate is 30 percent, what is the expected cost of financing a one-year loan in rubles?

a.

32.86 percent.

b.

25.32 percent

c.

27.14 percent.

d.

26.10 percent.

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