A U.S. Firm holds an asset in Great Britain and faces the following scenario: Probability Spot rate State 1 10% $ 2.20/ 7,000 State 2 80% $ 2.00/ 2,500 State 3 10% $ 1.80/ 100 p* = Pound sterling price of the asset held by the U.S. firm Question: Detail a hedging strategy using options. Strike price (USD/GBP) = 2.01054.4 Premium (USD/GBP) = 0.01. - A U.S. Firm holds an asset in Great Britain and faces the following scenario: Probability Spot rate State 1 10% $ 2.20/ 7,000 State 2 80% $ 2.00/ 2,500 State 3 10% $ 1.80/ 100 p* = Pound sterling price of the asset held by the U.S. firm Question: Detail a hedging strategy using options. Strike price (USD/GBP) = 2.01054.4 Premium (USD/GBP) = 0.01