Question 43 3 pts A U.S. firm holds an asset in Great Britain and faces the following scenario: State 1 State 2 State 3 25% 50% 25% Probability 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 "exposure" (i.e. the regression coefficient beta) is Cov(P.S) Hint: Calculate the expression VAR(S) 2,500 -2,500 7,500 none of the options