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please answer 10-86 Swiss Bank USA has the following foreign exchange positions in its trading portfolio, reported in dollars: $40 long in Swiss francs (SF),
please answer 10-86
Swiss Bank USA has the following foreign exchange positions in its trading portfolio, reported in dollars: $40 long in Swiss francs (SF), $20 million short in Swiss francs, $35 million long in Euros (E) and $20 million short in , $30 million long in British pounds () and $50 million short in . It uses the standardized framework proposed by the Bank for International Settlements (BIS) to estimate its capital charge for its foreign exchange positions. 10-85 What are the net positions for each foreign exchange held in the portfolio? a. $20 million short in SF, $15 million long in , and $20 million short in . b. $20 million short in SF, $15 million long in , and $20 million long in . $20 million long in SF, $15 million long in , and $20 million long in . d. $20 million long in SF, $15 million long in , and $20 million short in . $20 million long in SF, $15 million short in , and $20 million short in . Answer: D 10-86 What is the capital charge for its foreign exchange holdings using the BIS short hand method? $1.6 million. b. $2.8 million $3.2 million d. $4.0 million $4,4 million B e. C Step by Step Solution
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