Question
A U.S. firm holds an asset in France and faces the following scenarios: State Probability FX Asset value 1 0.15 $1.30/ 2,000 2 0.25 $1.20/
A U.S. firm holds an asset in France and faces the following scenarios:
| State | Probability | FX | Asset value |
| 1 | 0.15 | $1.30/ | 2,000 |
| 2 | 0.25 | $1.20/ | 2,500 |
| 3 | 0.60 | $1.10/ | 3,000 |
The standard deviation of the dollar price of this asset, if the U.S. firm remains unhedged against this exposure is closest to
Select one:
a. $352
b. $252
c. $452
d. $552
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Crime And Punishment In The Future Internet
Authors: Sanja Milivojevic
1st Edition
036746800X, 978-0367468002
