Question
Duke Inc. is a major exporter of spicy American cheese products. Duke financials are the following: Enterprise Valu is USD 15 million; total net debt
Duke Inc. is a major exporter of spicy American cheese products. Duke financials are the following: Enterprise Valu is USD 15 million; total net debt is 4 million out of which USD 3 million are EUR denominated net debt. Assume that FX business exposure to the EUR is 1.80. Duke also has a short position on a 5 year fixed for fixed USD/EUR sqap with a notional of USD 2 million (assume this is an at market swap. What is the FX equity exposure of Duke Inc.?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
