7. The following table shows the probability distribution related to changes in the exchange rate and in the domestic currency value of foreign assets: (10 marks) B Probability 1 0.5 1.2 0.2 2 2 1.2 0.1 3 3.5 1.2 0.2 4 5 1.2 0.3 5 6.5 1.2 0.2 Calculate expected values and variances for S and ? Calculate exposure, 2? 7. The following table shows the probability distribution related to changes in the exchange rate and in the domestic currency value of foreign assets: (10 marks) B Probability 1 0.5 1.2 0.2 2 2 1.2 0.1 3 3.5 1.2 0.2 4 5 1.2 0.3 5 6.5 1.2 0.2 Calculate expected values and variances for S and ? Calculate exposure, 2