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An Australian firm has monetary assets with exposure to the CAD in the amount of CAD 500,000. The firm has monetary liabilities with exposure to
An Australian firm has monetary assets with exposure to the CAD in the amount of CAD 500,000. The firm has monetary liabilities with exposure to the Euro in the amount of CAD 400,000. The firm has nonmonetary assets with exposure to the CAD in the amount of CAD 1,000,000. The nonmonetary assets have an exposure sensitivity to the CAD of 0.5. The current spot rate is 1.25 AUD/CAD. If the CAD appreciates by 5%, what will be the AUD change in the firm's equity?
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