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Benou, Inc., a U . S . exporting firm, expects to receive substantial payments denominated in Indonesian rupiah and Thai baht in one month. Based

Benou, Inc., a U.S. exporting firm, expects to receive substantial payments denominated in Indonesian rupiah and Thai baht in one month. Based on today's spot rates, the dollar value of t he funds to be received is estimated at $600,000 fo r the rupiah and $400,000 for the baht. Thus, Benou is exposed to a currency portfolio weight ed 60 percent in rupiah and 40 percent in baht. The company wants to determine the maximum exp ected one-month loss due to a potential decline in
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