2. Suppose you hold an asset in London. As a U.S. resident, you are concerned with the dollar value of the asset in the future. The following table presents three possible future states of the British economy that would affect the pound value of the asset and the dollar-pound exchange rate: State Probability Pound Value of the Asset $- Exchange Rate Dollar Value of the Asset Boom Normal 1/3 1/3 1/3 1,200,000 1,000,000 800,000 $1.60/ $1.50/ $1.40/ $1,920,000 $1,500,000 $1,120,000 Recession Calculate your asset exposure and interpret the result