Question 13 Revisit Later Let us say that USD-INR exchange rate is INR 80/USD. Also, based on the yearly data of the past, the changes in the exchange rate have a yearly mean of 5% and a yearly volatility of 10%. What is the probability that Rupee will depreciate to INR 92 or more in 1 year? Select an option O 6.68% O 16% O 12% O

Microeconomic Theory
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ISBN:9781337517942
Author:NICHOLSON
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Chapter17: Capital And Time
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Question 13
Revisit Later
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Let us say that USD-INR exchange rate is INR 80/USD. Also, based on the yearly data of
the past, the changes in the exchange rate have a yearly mean of 5% and a yearly
volatility of 10%. What is the probability that Rupee will depreciate to INR 92 or more in
1 year?
]
Select an option
O 6.68%
O 16%
O 12%
O 8%
Transcribed Image Text:Question 13 Revisit Later Attempted: 0/15 Let us say that USD-INR exchange rate is INR 80/USD. Also, based on the yearly data of the past, the changes in the exchange rate have a yearly mean of 5% and a yearly volatility of 10%. What is the probability that Rupee will depreciate to INR 92 or more in 1 year? ] Select an option O 6.68% O 16% O 12% O 8%
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