please post explanation!

Suppose you are a British venture capitalist holding a major stake in an e-comi..erce start-up in Silicon Valley. As a British resident, you are concerned with the pound value of your U.S. equity position. Assume that if the American economy booms in the future, your equity stake will be worth $1,000,000, and the exchange rate will be $1.40/E. If the American economy experiences a recession, on the other hand, your American equity stake will be worth $500,000, and the exchange rate will be $1.60/. You assess that the American economy will experience a boom with a 70 percent probability and a recession with a 30 percent probability What is your estimated exposure to the exchange risk? 2,976,000 $2,976,000 -$3,445,231 )-3,445,231