Suppose That the Probability That LIBOR (London Inter-Bank Offered Rate)will

Multiple Choice

Suppose that the probability that LIBOR (London inter-bank offered rate) will increase next trimester is 0.025.Assume also that the probability that your company will open a new branch overseas is 0.20.If the probability that at least one of the two events occur, i.e., LIBOR increases and/or your company opens a new overseas branch, is 0.21, what is the probability that both events occur?

A) 0.225
B) 0.015
C) 0.010
D) 0.007
E) 0.005