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You are the CEO of a U.K. based real estate company with properties in Italy. You are given the following information: Case Probability P S(/)

You are the CEO of a U.K. based real estate company with properties in Italy. You are given the following information:

Case Probability P S(/)
1 0.07 14,750.00 0.84793
2 0.38 7,400.00 0.84998
3 0.55 11,230.00 0.84991
F(/) 0.84994

What is the variance of the value of the Italian asset in British pounds before (BH) and after hedging (AH)?

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