Under the system of floating exchange rates, the rate of foreign money to the U.S. dollar is

Question:

Under the system of floating exchange rates, the rate of foreign money to the U.S. dollar is affected by many random factors, and this leads to the assumption of a normal distribution of small daily fluctuations. The rate of U.S. dollar per euro is believed in April 2007 to have a mean of 1.36 and a standard deviation of 0.03.1 Find the following.

a. The probability that tomorrow's rate will be above 1.42.

b. The probability that tomorrow's rate will be below 1.35.

c. The probability that tomorrow's exchange rate will be between 1.16 and 1.23.

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...