A U.S. firm holds an asset in Great Britain and faces the following scenario:

	State 1				State 2					State 3
Probability	25%				50%					25%
Spot rate	$	2.20	/£		$	2.00	/£				$	1.80	/£
P*	£	2,000			£	2,500					£	3,000
P	$	4,400			$	5,000					$	5,400

where,

P* = Pound sterling price of the asset held by the U.S. firm

P = Dollar price of the same asset

The expected value of the investment in U.S. dollars is

A) $3,700.   

B) $2,112.50.

C) $4,950.   

D) none of the options