Assume you are managing a bank in a country that is holding $34 million in assets and $75 million in liabilities denominated in dollars.

a. Determine the net exposure in dollars.

b. Calculate the gain or loss for each currency below given last years spot rate and the current spot rate respectively

for the U.S. $.

Euro: 0.78717; 0.9048

Krone: 5.7538; 6.755

Columbian Peso: 2,535.253; 3,384.9

Mexican Peso: 16.9566; 19.3533

Dinar: .2689; .30466

Dong: 17,476.5; 23,201.52

c. Convert each of your answers in part b to current dollar equivalents.