AU.S. firm holds an asset in UK and considers selling it in one year. The firm faces the following scenario of the future spot rates in one year: State 1 State 2 State 4 State 5 State 3 20% 20% 20% 20% 20% Probability Spot rate ($/) P*() 1.6 1.5 1.4 1.3 1.2 1200 1400 1600 1800 2000 P ($) $1920 $2100 $2240 $2340 $2400 In the above table, P* is the pound price (local price) of the asset in UK held by the U.S. firm and P is the dollar price of the asset. The variance of the dollar price of this asset if the U.S. firm remains unhedged against this exposure is AU.S. firm holds an asset in UK and considers selling it in one year. The firm faces the following scenario of the future spot rates in one year: State 1 State 2 State 4 State 5 State 3 20% 20% 20% 20% 20% Probability Spot rate ($/) P*() 1.6 1.5 1.4 1.3 1.2 1200 1400 1600 1800 2000 P ($) $1920 $2100 $2240 $2340 $2400 In the above table, P* is the pound price (local price) of the asset in UK held by the U.S. firm and P is the dollar price of the asset. The variance of the dollar price of this asset if the U.S. firm remains unhedged against this exposure is