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A U.S. firm holds an asset in Great Britain and faces the following scenario: Probability $2 202;. $2 00/35 $12 some _ 2 000 2
A U.S. firm holds an asset in Great Britain and faces the following scenario: Probability $2 202;. $2 00/35 $12 some _ 2 000 2 500 3 000 _ $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 34. The expected value of the investment in U.S. dollars is: A. $4,950 B. $3,700 c. $2,112.50 D. none of the above
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