Question: plz show the process and type the answer Question 3: Total 25 marks Bravo Ltd (UK) wishes to fund an expansion in its business and
plz show the process and type the answer


Question 3: Total 25 marks Bravo Ltd (UK) wishes to fund an expansion in its business and has the option to borrow in GBP, its home currency, or in Chinese Yuan (CNY). The length of the loan is 1 year. The bank will lend CNY at 2% per annum and the interest rate to borrow Pound Sterling GBP is 5%. A probability distribution for the possible change in value of the Euro over the life of the loan is given in the table below. % Possible rate of change in Probability of Euro over the life of the loan occurrence % -124 2 ke -94 64 -64 104 E -34 20% K 14 254 42 184 72 104 104 92 1002 REQUIRED c)Assess which currency should be used for financing providing support for your conclusion [2 marks] Please provide the answer here; you may increase space where necessary
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