US company has a single, wholly-owned affiliate in Japan. This affiliate has exposed assets of 500 million yen and exposed liabilities of 800 million yen. The exchange rate appreciates from 150 yen per dollar to 100 yen per dollar. What is the amount of net exposure?

		700 million
		600 million
		500 million lagging
		400 million
		300 million

The one-year US interest rate is 10 percent, and the one-year Italian interest rate is 13 percent. If a US company invests its funds in Italy, by what percentage would the euro have to depreciate to make its effective interest rate the same as the US interest rate from the US company's perspective?

		-10.55%
		- 6.50%
		- 4.65%
		- 2.65%
		- 1.00%

A US company has a single, wholly-owned affiliate in Japan. This affiliate has exposed assets of 500 million yen and exposed liabilities of 800 million yen. If the Japanese yen declines from 150 yen per dollar to 200 yen per dollar, what would be the amount of the translation gain or loss?

		$2 million
		$0.5 million
		$3.1 million
		$2 million
		$6 million

A US company has a single, wholly-owned affiliate in Japan. This affiliate has exposed assets of 500 million yen and exposed liabilities of 800 million yen. If the Japanese yen declines from 150 yen per dollar to 200 yen per dollar, what would be the amount of the translation gain or loss?

		$2 million
		$0.5 million
		$3.1 million
		$2 million
		$6 million