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Thunder Corporation is an American firm that owns an asset in Norwich, England whose GBP price is random. The following table summarizes the three possible

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Thunder Corporation is an American firm that owns an asset in Norwich, England whose GBP price is random. The following table summarizes the three possible states of nature. The future GBP price of this Welsh asset (P*) and the future spot foreign exchange rate (S) depends on the realized state of nature. Which of the following statements is most correct? State Probability P* S S X P* 13 $1,000 $1.25/f $1,250 13 E 833 $1.50/E $1,250 1/3 f 714 $1.75/f $1,250

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