I'm having trouble with these questions.

1. If the Swiss franc is expected to depreciate in the near future, would a U.S.based Financial Institution in Lausanne prefer to be net long or net short in its asset positions? Why? 2. A U.S. insurance company borrows $1,000,000 to invest in a private placement of UK bonds. Each bond pays 300 in interest per year for 20 years. c If the Current exchange rate is 0.874/S, what is the nature of the US insurance company's exchange rate risk (net long or net short)? 0 What type of exchange rate movement in the E (appreciate or depreciate) will cause the insurance company to lose money? 3. Answer the following questions regarding the balance sheet given below. Assume 1 = $1.30. a) Is this bank net short or net long? b) What is the net interest income (Nil) if the value of the E appreciates to $1.50? c) What is the net interest margin (NIM) if the value ofthe depreciates to 51.10? \" Liabilities and Equity $800M in USD $300M in USD $200M in GBP $700M in GBP m Denosit Rate Lending Rate US 8% 9% UK 4% 5% 4. Assume that a US bank has assets located in London worth 150 million on which it earns an average of 8% per year. The bank has 100 million in liabilities on which it pays an average of 6% per year. The current spot rate is 1 = $1.50 a) If the exchange rate at the end of the year is 1 = $1.75, will the US dollar have appreciated or depreciated against the pound? b) Is the bank net short or net long? Given the change in the exchange rate, will the bank make money or lose money? 5. What does it mean to be net long? What movement in the foreign exchange rate will result in a loss? What does it mean to be net short? What movement in the foreign exchange rate will result in a loss