Q3. Export Bank has a trading position in Japanese yen and Swiss francs. At the close of business on 4 February, the bank had 300000000 and SF 10000000 . The exchange rates for the most recent six days are given below: Exchange rates ner dollar at the close of business a. What is the foreign exchange ( FX) position in dollar equivalents using the FX rates on 4 February? b. What is the definition of delta as it relates to the FX position? c. What is the sensitivity of each FX position; that is, what is the value of delta for each currency on 4 February? d. What is the daily percentage change in exchange rates for each currency over the five-day period? (Note to students: It will be easier to use spreadsheet for this question.) e. What is the total risk faced by the bank on each day? What is the worst-case day? What is the best-case day? (Note to students: It will be easier to use spreadsheet for this question.) f. Assume that you have data for the 500 trading days preceding 4 February. Explain how you would identify the worst-case scenario with a 95 per cent degree of confidence? g. Explain how the 5 per cent value at risk (VaR) position would be interpreted for business on 5 February. h. How would the simulation change at the end of the day on 5 February? What variables and/or processes in the analysis may change? What variables and/or processes will not change