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A U.S. firm holds an asset in France and faces the following scenario: In the above table, P is the euro price of the asset

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A U.S. firm holds an asset in France and faces the following scenario: In the above table, P is the euro price of the asset held by the U.S. firm and Pis the dollar price of the asset. a. Compute the exchange exposure faced by the U.S. firm. c. If the US. firm hedges against this exposure using a forward controct. what is the variance of the dollar value of the hedged position

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