7. if a U.S. firm holds an asset in Great Britain and faces the following scenario: P= Pound sterling price of the asset held by the U.S. firm P= Dollar price of the same asset The CFO runs a regression of the form P=a+bS+e The regression coefficient is estimated as b=7500 Suppose the firm Sells 7,500 forward at the 1 -year forward rate F1($/)=$2/. Total value (i.e., net cash flows from hedging plus asset value) in state 1,2 , and 3 respectively will be $5,000,$5,000,$5,000.$5,100,$5,000,$5,100.$5,100,$5,100,$5,100. 7. if a U.S. firm holds an asset in Great Britain and faces the following scenario: P= Pound sterling price of the asset held by the U.S. firm P= Dollar price of the same asset The CFO runs a regression of the form P=a+bS+e The regression coefficient is estimated as b=7500 Suppose the firm Sells 7,500 forward at the 1 -year forward rate F1($/)=$2/. Total value (i.e., net cash flows from hedging plus asset value) in state 1,2 , and 3 respectively will be $5,000,$5,000,$5,000.$5,100,$5,000,$5,100.$5,100,$5,100,$5,100