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final.xlsx-A U.S.firm holds an asset in Germany and faces the following scenario: P Probability 25% spot rate $1.27 $1.1/ P 1500 1400 $1800 25% $1540

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final.xlsx-A U.S.firm holds an asset in Germany and faces the following scenario: P Probability 25% spot rate $1.27 $1.1/ P 1500 1400 $1800 25% $1540 State 1 State 2 State 3 State 4 25% $1.0/ 1300 $1300 $1080 25% $0.97 1200 In the above table, P is the euro price of the asset held by the U.S.firm and P is the dollar price of the asset. Compute the exchange exposure faced by the U.S.firm. O 2400 O 1200 1800 3000

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