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Problem 9: Duke Inc. is a major exporter of spicy American cheese products. Duke's financials are the following: Vuso = USD 15 Million; NDUSD =

Problem 9: Duke Inc. is a major exporter of spicy American cheese products. Duke's financials are the following: Vuso = USD 15 Million; NDUSD = 4 Million; Assume that NDER-USD 3 Million are EUR-denominated, so NDSB -USD 1 Million. Assume that FX business exposure to the EUR is Us DR = 1.80. Duke also has a short position on a 5-year fixed-for-fixed USD/EUR swap with a notional of USD 2 Million (assume this is an at-market swap). What is the FX equity exposure of Duke Inc.? Problem 9: Duke Inc. is a major exporter of spicy American cheese products. Duke's financials are the following: Vuso = USD 15 Million; NDUSD = 4 Million; Assume that NDER-USD 3 Million are EUR-denominated, so NDSB -USD 1 Million. Assume that FX business exposure to the EUR is Us DR = 1.80. Duke also has a short position on a 5-year fixed-for-fixed USD/EUR swap 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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