Task 2: Other than the Mexican market, Heinz is also exporting honey products to several countries in the Eurozone (e.g., Belgium, France, Germany) and therefore exposed to movements in the exchange rate between Euro (EUR) and New Zealand dollar (NZD). To further help Heinz manage foreign exchange risk, you have obtained the following information: Probability Spot rate P* State 1 30% State 2 50% State 3 EUR 0.5447/NZD EUR 450 thousand EUR 0.5826/NZD EUR 320 thousand 20% EUR 0.5607/NZD EUR 370 thousand The above table shows the future local currency price of the cash income (P*) as well as the future spot exchange rate in three different states of the world. CHIQ c. If Heinz hedges against this exposure using a forward contract, what is the variance of the NZD value of the hedged position?