Find an Effective Hedge Financial Hedge If a U

Find an effective hedge financial hedge if a U.S.firm holds an asset in Great Britain and faces the following scenario: P* = Pound sterling price of the asset held by the U.S.firm P = Dollar price of the same asset
The CFO runs a regression of the form .
The regression coefficient beta is calculated as Where The variance of the exchange rate is calculated as: The expected value of the investment in U.S.dollars is:
E[P] = 0.25* $6,600 + 0.50 * $5,000 + 0.25 * $3,600 = $5,050
Which of the following is the most effective hedge financial hedge?

A) Sell £7,500 forward at the 1-year forward rate, F1($/£) , that prevails at time zero.
B) Buy £7,500 forward at the 1-year forward rate, F1($/£) , that prevails at time zero.
C) Sell £2,500 forward at the 1-year forward rate, F1($/£) , that prevails at time zero.
D) 0.25 *£3,000 + 0.50 * £2,500 + 0.25 * £2,000 = £2,500