A US company has a single wholly owned affiliate in Japan. The affiliate has exposed assets of 500 billion Yen and exposed liabilities of 700 billion Yen. The exchange rate appreciates from 130yen per $ to 100yen per $.

a) What is the amount of net exposure?

b) What is the amount of translation gain or loss?

c) If the yen had gone from 130yen to 150yen per $, then what would be the amount of translation gain or loss?