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17- The following are the foreign currency positions of an FI, expressed in dollars. Currency Assets Liabilities FX bought FX sold Euro (EUR) $125 000
17-
The following are the foreign currency positions of an FI, expressed in dollars.
Currency | Assets | Liabilities | FX bought | FX sold
|
Euro (EUR) | $125 000 | $50 000 | $10 000 | $25 000 |
British pound (GBP) | 50 000 | 24 000 | 15 000 | 20 000 |
What is the expected loss or gain if the exchange rate depreciates by 2 per cent?
Select one:
a.
Loss of $230.
b.
Loss of $420.
c.
Gain of $420.
d.
Gain of $230.
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