The following are the foreign currency positions of an FI, expressed in the foreign currency:...
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The following are the foreign currency positions of an FI, expressed in the foreign currency:
Currency Assets Liabilities FX Bought FX Sold Swiss francs (SFr) SFr 122,190 SFr 48,876 SFr 9,775 SFr 14,663 British pound () 38,168 16,794 11,450 15,267 Japanese yen () 8,522,727 3,406,091 1,363,636 10,000,000 The exchange rate of dollars per SFr is 1.0230, dollars per British pounds is 1.3100, and dollars per yen is 0.008800. The following are the foreign currency positions converted to dollars.
Currency Assets Liabilities FX Bought FX Sold Swiss francs (SFr) $125,000 $50,000 $10,000 $15,000 British pound () 50,000 22,000 15,000 20,000 Japanese yen () 75,000 30,000 12,000 88,000 What is the FIs net exposure in Swiss francs stated in SFr and $s?
What is the FIs net exposure in British pounds stated in and $s?
What is the FIs net exposure in Japanese yen stated in and $s?
What is the expected loss or gain if the SFr exchange rate appreciates by 1 percent? State your answers in SFrs and $s.
What is the expected loss or gain if the exchange rate appreciates by 1 percent? State your answers in s and $s.
What is the expected loss or gain if the exchange rate appreciates by 2 percent? State your answers in s and $s.
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