Torrey Torry from Arkansas, United States of America has bought an industrial land in Liverpool, United Kingdom in 2017. He plans to sell the land in 2020. Economic Analyst informed him that in 2020, the land will be worth 3,800 if the property market is lack of demand and one British pound will be worth $2.15. However, the land will be worth higher at 5,800 if the property market is in good demand and the pound will be at $2.55/. The probability for the United Kingdom's property market in high demand is 55 percent probability and the low demand with a 45 percent probability respectively. (a) What is Torrey Terry's exposure to the exchange rate risk? (b) Jamie aim to retire in 5 years' time from his job. He has options to choose whether to invest in stocks or bonds. Please advise Jamie. Torrey Torry from Arkansas, United States of America has bought an industrial land in Liverpool, United Kingdom in 2017. He plans to sell the land in 2020. Economic Analyst informed him that in 2020, the land will be worth 3,800 if the property market is lack of demand and one British pound will be worth $2.15. However, the land will be worth higher at 5,800 if the property market is in good demand and the pound will be at $2.55/. The probability for the United Kingdom's property market in high demand is 55 percent probability and the low demand with a 45 percent probability respectively. (a) What is Torrey Terry's exposure to the exchange rate risk? (b) Jamie aim to retire in 5 years' time from his job. He has options to choose whether to invest in stocks or bonds. Please advise Jamie