Exchange rate question

3. A) pound today is $2 per 1, E$1 = 2.00. The one month interest rate (for both deposit and borrowing) in Australia is 0.2%. The one month interest rate (for both deposit and borrowing) in the UK. is 0.3%. You and the nancial market in general believe that with the probability of 50% the people in the UK Will vote on \"YES\" to Brexit and the Australian dollar will appreciate by 10% to E315; = 1.80, and with the probability of 50%, the people will vote on \"NO\" to Brexit and the Australian dollar will depreciate by 5% to E$I = 2.10. Thus, the expected exchange rate in 1 month is E'3 $/ = 0.5x 1.8+0.5>