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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 variance of the dollar value of the property, attributable to the exchange rate uncertainty is closest to
Select one:
a. $61,189
b. $60,189
c. $62,189
d. $63,189
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