Mikhail Khodorkovskys Dilemma. Mikhail Khodorkovsky was one of the infamous Russian oligarchs, accumulating billions of dollars in

Question:

Mikhail Khodorkovsky’s Dilemma. Mikhail Khodorkovsky was one of the infamous Russian oligarchs, accumulating billions of dollars in wealth in the mid-

1990s with the fall of the Soviet Union. But in 2003 he had been imprisoned by the Russian state for a decade. Upon his release from prison in 2013 he had taken up residence in Switzerland—with his money.

In November 2014 Mikhail held a portfolio of USD200 million and CHF150 million in Swiss banks, in addition to accounts in Russia still holding RUB1.2 billion. Using the exchange rate table, answer the following:

a. What is the value of Mikhail’s portfolio as measured in Russian rubles?

b. What is the value of Mikhail’s portfolio as measured in Swiss francs?

c. What is the value of Mikhail’s portfolio as measured in U.S. dollars?

d. Which currency demonstrated the greatest fluctuations in total value over the six dates?

Switzerland has long served as a cornerstone of banking conservatism and a safe port in a world of currency storms.
Swiss banks had long been used by investors from all over the world as financially secure institutions that would preserve the depositor’s wealth with confidentiality. A large part of the security offered was the Swiss franc itself. Russian citizens of wealth had used Swiss banks heavily in recent years as a place where they could shelter their capital from politics, both inside Russia and the outside (EU and US) world. But beginning in the fall of 2014 the Russian ruble’s value began to slide against the Swiss franc, threatening their wealth. Use data in the exhibit and the table below to answer this problem.

image text in transcribed