A U.S. firm holds an asset in Israel and faces the following scenario in Israeli Shaekel (IS):

Probability Case 1 Case 2 Case 3

25% 50% 25%

Spot Price ($/IS)0.3000 ($/IS)0.2000 ($/IS)0.1500

Israeli Shaekel price of asset held by U.S. Firm IS2000 IS5000 IS3000

U.S. Dollar price of the same asset $600 $1000 $450

What is the Exposure (Regression Coefficient Beta) Coefficient?

Hint: Calculate the expression : covariance of the U.S. dollar price of the Israeli asset divided by the variance of the ($/Israeli Shaekel) exchange rate.