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A US. firm holds an asset in France and faces the following 5 cenario In the above table, P is the euro price of the

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A US. firm holds an asset in France and faces the following 5 cenario In the above table, P is the euro price of the asset held by the US firm and P is the dollar price of the asset. a. Compute the exchange exposure faced by the US fifm b. What is the variance of the dollar price of this asset if the U.S. firm remains unhedged against this exposure? c. If the US fitm hedges against this exposure using a forward contract, what is the variance of the dollar value of the hedged position

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