A USfirm Holds an Asset in Great Britain and Faces the the Following

A U.S.firm holds an asset in Great Britain and faces the following scenario:
$\begin{array}{l}\begin{array} { l } &\text { State 1}\\\text { Probability } & 25 \% \\\text { Spotrate } & \$ 2.20 / £ \\P^{*} & £ 1,800 \\P & \$ 4,500\end{array}\begin{array} { l } \text { State 2}&\text { State 3}\\50 \% & 25 \% \\\$ 2.00/£ & \$ 1.60 / £ \\£ 2,250 & £ 2,812.50 \\\$ 4,500 & \$ 4,500\end{array}\end{array}$
where,
P^* = Pound sterling price of the asset held by the U.S.firm
P = Dollar price of the same asset
Which of the following conclusions are correct?

A) Most of the volatility of the dollar value of the British asset can be removed by hedging exchange risk because b²[VAR(S) ] and VAR(e) are 0 ($) ² and 0 ($) ² respectively.
B) None of the volatility of the dollar value of the British asset can be removed by hedging exchange risk because b²[VAR(S) ] and VAR(e) are 0 ($) ² and 0 ($) ² respectively.
C) Most of the volatility of the dollar value of the British asset cannot be removed by hedging exchange risk because b²[VAR(S) ] and VAR(e) are 125,000 ($) ² and −127,500 ($) ² respectively.
D) Most of the volatility of the dollar value of the British asset can be removed by hedging exchange risk because b²[VAR(S) ] and VAR(e) are 125,000 ($) ² and −127,500 ($) ² respectively.