Export Bank has a trading position in Japanese Yen and Swiss Francs.At the close of business on February 4, the bank had 300,000,000 and Sf10,000,000.The exchange rates for the most recent six days are given below:

Exchange Rates per U.S. Dollar at the Close of Business

2/4 2/3 2/2 2/1 1/29 1/28

Japanese Yen112.13112.84112.14115.05116.35116.32

Swiss Francs1.41401.41751.41331.42171.41571.4123

c.What is the sensitivity of each FX position; that is, what is the value of delta for each currency on February 4?

Japanese Yen:1.01 x current exchange rate = 1.01 x 112.13 = 113.2513/$

Revalued position in $s= 300,000,000/113.2513 = $2,648,976.21

Delta of $ position to Yen= $2,648,976.21 - $2,675,465.98

= -$26,489.77

Swiss Francs:1.01 x current exchange rate = 1.01 x Swf1.414 = Swf1.42814

Revalued position in $s= Swf10,000,000/1.42814 = $7,002,114.64

Delta of $ position to Swf= $7,002,114.64 - $7,072,135.78

= -$70,021.14

In the answer why 1.01 would be multiplied? where is the 1.01 from?