A US Firm Holds an Asset in Israel and Faces the the Following

A U.S. firm holds an asset in Israel and faces the following scenario:
$\begin{array} { l l l l } \hline & \text { State 1 } & \text { State 2 } & \text { State 3 } \\\hline \text { Probability } & 25 \% & 50 ^ { \circ } \text { o } & 25 \% \\\text { Spot rate } & \$ 0.30 \text { ILS } & \text { \$0.20 ILS } & \$ 0.15 / \text { ILS } \\\text { P* } & \text { ILS2,000 } & \text { ILS5,000 } & \text { ILS3,000 } \\\text { P } & \$ 3,000 & \text { \$2.500 } & \text { \$750 }\end{array}$
where,
P* = Israeli new shekel (ILS) price of the asset held by the U.S. firm
P = dollar price of the same asset

-Which of the following conclusions are correct? (Round your final answer to nearest whole dollar and round intermediate calculations to 2 decimal places)

A) most of the volatility of the dollar value of the Israeli asset can be removed by hedging exchange risk because b²[Var(S) ] and Var(e) are 236,717 ($) ² and 493,751 ($) ² respectively
B) most of the volatility of the dollar value of the Israeli asset can not be removed by hedging exchange risk because b²[Var(S) ] and Var(e) are 236,717 ($) ² and 493,751 ($) ² respectively
C) most of the volatility of the dollar value of the Israeli asset can not be removed by hedging exchange risk because b²[Var(S) ] and Var(e) are 493,751 ($) ² and 236,717 ($) ², respectively
D) most of the volatility of the dollar value of the Israeli asset can be removed by hedging exchange risk because b²[Var(S) ] and Var(e) are 493,751 ($) ² and 236,717 ($) ² respectively