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A U.S. bank has made 150 million loans in Britain and has 100 in deposits. The bank's currency trading desk has also contracted to buy

A U.S. bank has made 150 million loans in Britain and has 100 in deposits. The bank's currency trading desk has also contracted to buy 30 million and has short positions of 45 million.

What is the bank's net exposure?

How could they use forward contracts to hedge the exposure?

If the bank has exposures in euros and yen, would you recommend they use the forward hedge? Why or why not?

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