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Currency content analysis technique indicates Risky cashflow =XSFR+Y USD, with currency risk in the SFR / USD exchange rate. If the spot exchange rate is
Currency content analysis technique indicates Risky cashflow =XSFR+Y USD, with currency risk in the SFR / USD exchange rate. If the spot exchange rate is 9.26 SFR / USD, the corresponding cashflow is USD 15.3 milion. If the spot exchange rate is 7.58 SFR / USD, the corresponding cashflow is USD 16.5 million. Solving the system of two equations in two unknowns, the values of X and Y will be 10 million SFR and 50 million USD 50.2 million SFR and 9.88 million USD 50 million SFR and 10 million USD 9.88 million SFR and 50.2 million SFR
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