Question 6 (3 points) A US firm holds an asset in France and faces the following scenario: Probability Spot rate P* P State 1 50% $1.20/ 1,500 $1,800 State 2 50% $1.10/ 1,400 $1,540 In the table above, P* is the Euro price of the asset and P is the dollar price of the asset. The data provided indicate that the dollar-value of the French asset euro depreciates, so the firm should hedge its exposure by entering a on the euro. decreases; short increases; short increases; long decreases; long as the forward