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8. The following table shows the probability distribution related to changes in the exchange rate and in the domestic currency value of foreign assets: V

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8. The following table shows the probability distribution related to changes in the exchange rate and in the domestic currency value of foreign assets: V B Probability 2 0.2 0.1 0.1 0.1 4 1 0.25 1 1.5 6 0.25 0.2 0.1 9 0.33 3 0.45 0.5 10 4.5 Calculate expected values and variances for $ and V? (8 marks) Calculate exposure, 2? (2 marks)

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