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A U.S. firm holds an asset in Great Britain and faces the following scenario: Probability State 1 (25%) State 2 (50%) State 3 (25%) Spot
A U.S. firm holds an asset in Great Britain and faces the following scenario:
| Probability | State 1 (25%) | State 2 (50%) | State 3 (25%) |
| Spot rate | $2.20/ | $2.00/ | $1.80/ |
| P* | 2,000 | 2,500 | 3,000 |
| P | $4,400 | $5000 |
$5,400
|
In this case, the firm's exposure (which we referred to as "b") equals
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Foundations In Personal Finance
Authors: Dave Ramsey
3rd Edition
1936948524, 978-1936948529
