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Question 3 1 pts A U.S. firm holds an asset in Great Britain and faces the following scenario: State 1 State 2 State 3
Question 3 1 pts A U.S. firm holds an asset in Great Britain and faces the following scenario: State 1 State 2 State 3 Probability 25% 50% 25% Spot rate $2.20 / $ 2.00 / $ 1.80 / P 3,000 2,500 2,000 P $ 6,600 $ 5,000 $3,600 where, P* = Pound sterling price of the asset held by the U.S. firm P = Dollar price of the same asset The expected value of the investment in U.S. dollars is $5,050 $3,700 $2,112.50 none of the options
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