A U.S. firm holds an asset in Great Britain and faces the following scenario: 
where,
P* = Pound sterling price of the asset held by the U.S. firm
P = Dollar price of the same asset
-The variance of the exchange rate is:
A) 0.0200
B) 0.101875
C) 0.002
D) none of the above
Correct Answer:
Verified
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