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5. The following are the foreign currency positions of an FI, expressed in dollars. Assets Liabilities FX Bought FX Sold 45,000 69,000 a. What is
5. The following are the foreign currency positions of an FI, expressed in dollars. Assets Liabilities FX Bought FX Sold 45,000 69,000 a. What is the FI's net exposure in British pounds? [3 marks] b. What is the FI's net exposure in Japanese yen? [3 marks] c. What is the expected loss or gain if the exchange rate appreciates by 1.5 percent? d. What is the expected loss or gain if the exchange rate appreciates by 1 percent? Currency British pound () Japanese yen () 23,000 29,500 16,500 15,000 21,800 75,000
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