Suppose that you hold a piece of land in the City of London that
you may want to sell in one year. As a U.S. resident, you are
concerned with the dollar value of the land. Assume that, if the
British economy booms in the future, the land will be worth £10,000
and one British pound will be worth $1.36. If the British economy
slows down, on the other hand, the land will be worth less, i.e.,
£9,000, but the...