120 Q17 Sappose yeu are a Britich venture capitalist holding a mapor stake is an e-commerce wart-up in Saficuin Valley As a firitish resideit. yoe are coecemed with the pound value of your U.S. equity position. Aasame that if the Aracricah ceveany booms in the futurev your equity stake will be worth $1,000.300, and the exchange rate will he \$1 41. If the American ecenoeny experiences a fecension, on the ether hand, your American equiry stake will be worth 55003 30. and the cuhange tate wall be 51.6f. Yoe assess that the American economy will experience a boom with a 60 percent probabality and a recessice with a 40 perceat probability; a. Estimate year exposure bo the exchange risk. (Round final answer to nearsot dollar.) (5 points) b. Compute the variance of the pound value of your Americaa cquity position that is antributable to the exchange tate uncertainty, (Round final answer te nearest dellar.) ( 5 points)