A USFirm Holds an Asset in Israel and Faces the Following

A U.S.firm holds an asset in Israel and faces the following scenario:
$\begin{array}{l}\begin{array} { l } &\text { State 1}\\\text { Probability } & 25 \% \\\text { Spotrate } & \$ 0.30 / LS \\P^{*} & LS 2,000 \\P & \$ 600\end{array}\begin{array} { l } \text { State 2}&\text { State 3}\\50 \% & 25 \% \\\$ 0.20/LS & \$ 0.15 / LS \\£ 5,000 & £ 3,000 \\\$ 1,000 & \$ 4,50\end{array}\end{array}$
where,
P^* = Israeli shekel (IS) 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 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 cannot 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 cannot be removed by hedging exchange risk because b²[Var(S) ] and VAR(e) are 8.22 ($) ² and 59,211 ($) 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 8.22 ($) ² and 59,211 ($) ² respectively.