3. A foreign exchange trader with a U.S. bank took a short position of 5,000,000 when the...
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3. A foreign exchange trader with a U.S. bank took a short position of £5,000,000 when the
$/£ exchange rate was 1.55. Subsequently, the exchange rate has changed to 1.61. Is this movement in the exchange rate good from the point of view of the position taken by the trader? By how much has the bank’s liability changed because of the change in exchange rate?
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Related Book For
ISE International Financial Management
ISBN: 9781260575316
9th International Edition
Authors: Cheol Eun, Bruce Resnick, Tuugi Chuluun
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