From the Information Provided, Create the Sample Space of Possible

question 75

Multiple Choice

From the information provided, create the sample space of possible outcomes.
-Flip a coin three times.

• A) HHH HHT HTH HTT THH THT TTH TTT
• B) HHH HTT HTH TTT HTT THH HHT THT
• C) HTT THT HTH HHH TTH TTT
• D) HHH TTT THT HTH HHT TTH HTH

---

Definitions:

Exchange Rate Risk

The potential for investors or companies to experience losses due to fluctuations in the exchange rates between currencies.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account; used in capital budgeting to analyze the profitability of an investment or project.

Forward Exchange Rate

The exchange rate at which two parties agree to exchange currencies at a future date.

Forward Trade

A non-standardized contract between two parties to buy or sell an asset at a specified future date for a price that is agreed upon today.