Question 9a (2 marks) Your Australian company is planning to purchase a USD 5 million machine from the United States in 6 months time What is your spot position What is your currency exposure Select one a Your spot position is short You are exposed to a depreciation of the USD (falling USD value) b Your spot position is long You are exposed to a depreciation of the USD (falling USD value) c Your spot position is long You are exposed to an appreciation of the USD (rising USD value) d Your spot position is short You are exposed to an appreciation of the USD (rising USD value)

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Question 9a (2 marks) Your Australian company is planning to purchase a USD 5 million machine from the United States in 6 months time. What

Question 9a (2 marks)

Your Australian company is planning to purchase a USD 5 million machine from the United States in 6 months time. What is your spot position? What is your currency exposure?

Select one:

Your spot position is short. You are exposed to a depreciation of the USD (falling USD value).

Your spot position is long. You are exposed to a depreciation of the USD (falling USD value).

Your spot position is long. You are exposed to an appreciation of the USD (rising USD value).

Your spot position is short. You are exposed to an appreciation of the USD (rising USD value).

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