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Over the next 90 days, economists forecast that the pound may strengthen relative to the dollar by as much as 12%, or it may weaken

Over the next 90 days, economists forecast that the pound may strengthen relative to the dollar by as much as 12%, or it may weaken by as much as 9%. The possible values for the rate of change of the dollarpound spot exchange rate are 9%, 4%, 0%, 5%, and 12%. If these values are equally likely, what are the mean and standard deviation of the future spot exchange rate if the current rate is $1.5/?

a.

$0.6200/; $0.8950/

b.

$0.6614/; $0.1232/

c.

$1.5120/; $0.1087/

d.

$1.5280/; $2.5490/

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