Question
Green Bank is based in California, U.S.A. Green Bank holds loans in Swiss franc that are worth 200 million Swiss francs. Green Bank has deposits
Green Bank is based in California, U.S.A. Green Bank holds loans in Swiss franc that are worth 200 million Swiss francs. Green Bank has deposits in Swiss franc that are worth 250 million Swiss francs.
- Is Green Bank net long or net short in Swiss franc?
- Is Green Bank immunized against foreign currency risk?
- Suppose the value of the Swiss franc depreciates as compared to the value of the dollar. Is this good or bad for Green Bank?
Explain your answer.
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Personal Finance For People In Addiction Recovery
Authors: Brandon Turner
1st Edition
1675917043, 978-1675917046
