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Turkish based ABC Inc., owes XYZ Inc., 1 . 0 0 0 . 0 0 0 and is scheduled to receive $ 9 5 0
Turkish based ABC Inc., owes XYZ Inc., and is scheduled to receive $ from KLM Inc., in days.Let the day forward rates at which ABC can contract to buy and sell euros and dollars be TRYEUR andTRYUSD respectively. Assume that ABC Inc., contracted with a local bank in order to eliminate its foreign exchange exposures with the corresponding day forward rates. pa Provide a qualitative description of ABC's transaction exchange risk. pb Summarize the asset and liability positions of ABC Inc.
Turkish based ABC Inc., owes XYZ Inc., and is scheduled to receive $ from KLM Inc., in days.Let the day forward rates at which ABC can contract to buy and sell euros and dollars be TRYEUR andTRYUSD respectively. Assume that ABC Inc., contracted with a local bank in order to eliminate its foreign exchange exposures with the corresponding day forward rates. pa Provide a qualitative description of ABC's transaction exchange risk. pb Summarize the asset and liability positions of ABC Inc.
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