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

$

2.50

/

$

2.00

/

$

1.60

/

P^*

1,800

2,250

2,812.50

P

$

4,500

$

4,500

$

4,500

where,

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

P= Dollar price of the same asset

The variance of the exchange rate is: