Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are the foreign currency positions of an Fl, expressed in the foreign currency: Currency Swiss franc (SE) British pound (6) Japanese yen (1)

image text in transcribed
image text in transcribed
The following are the foreign currency positions of an Fl, expressed in the foreign currency: Currency Swiss franc (SE) British pound (6) Japanese yen (1) Assets sf 127,500 38,168 Y 7.869,885 Liabilities SE 51.000 16,794 43, 147,954 PX Dought st 10,200 11,450 1,259,181 PX Sold SE 15,300 15,267 79,233,998 The exchange rate of dollars for Sf is 1.02, of dollars for British pound is 1.31, and of dollars for yen is 0.00953. The following are the foreign currency positions converted to dollars: Currency Assets Liabilities TX Bought PX Bold Swiss franc (S) $125,000 $50,000 $10,000 $15,000 British pound ( $ 50,000 $22,001 $15.000 $20,000 Japanese yen (Y) $ 75,000 530,000 $12,000 608,000 a. What is the Fl's net exposure in Swiss francs stated in Swiss francs (S) and in dollars ($)? b. What is the Fi's net exposure in British pounds stated in British pounds () and in dollars (5)? c. What is the fils net exposure In Japanese yen stated in Japanese yen (and in dollars (51 (Negative amounts should be indicated d. What is the expected loss or gain if the Sf exchange rate appreciates by 1 percent? e. What is the expected loss or gain if the exchange rate appreciates by 1 percent? (Round your answer to the nearest whole dollar amount(e.g., 32) 1. What is the expected loss or gain if the exchange rate appreciates by 2 percent? (Negative amount should be indicated by minus sign.) a. Sf 70,000 X FI's net exposure in Swiss francs Fl's net exposure in Dollars $ 70,000 b. 17,557 Fl's net exposure in British pounds Fl's net exposure in Dollars $ 22,999 C. Fl's net exposure in Japanese yen Fl's net exposure in Dollars \ 747,114 % $ (31,000) d. Expected loss or gain in Swiss francs Sf 7 X e. Expected loss or gain in British pounds 230 f. Expected loss or gain in Japanese yen 620 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions