Multiple Choice 0.0200 none of the options 0.10 0.002 A U.S. firm holds an asset in Great Britain and faces the following scenario: Probability Spot rate p* P State 1 State 2 25% 50% $2.00 $ 2.20 3,000 $6,600 $ 1.80 2,5 $5,000 ,500 State 3 25% The variance of the exchange rate is 2,000 $3,600 where, p* = Pound sterling price of the asset held by the U.S. firm P= Dollar price of the same asset