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Business, 04.12.2019 02:31 dbih2014

Au. s. firm holds an asset in great britain and faces the following scenario: state 1 state 2 state 3 probability 25% 50% 25%spot rate$2.50/£ $2.00/£ $1.60/£p*£1,800 £2,250 £2,812.50 p$4,500 $4,500 $4,500 where, p* = pound sterling price of the asset held by the u. s. firmp = dollar price of the same asset the "exposure" (i. e., the regression coefficient beta) ishant: calculate the expression cov(p, s)var(s)

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