a Discuss the development of a probability distribution of effective financing rates when financing in a foreign currency How is this distribution developed b Once the probability distribution of effective financing rates from financing in a foreign currency is developed, how can this distribution ...

a First a probability distribution of exchange rate changes is created Using this along ...

a. Discuss the development of a probability distribution of effective financing rates when financing in a foreign

Question:

a. Discuss the development of a probability of effective financing rates when financing in a foreign currency. How is this developed?
b. Once the probability of effective financing rates from financing in a foreign currency is developed, how can this be used in deciding whether to finance in the foreign currency or the home currency?

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...