You must then calculate the value of your FX portfolio at the end of June using the calculated bid/ask rates. Report the expected value of your position in each currency in the position summary in Table 2 [2 Marks]. Finally, you must calculate expected profit/loss (gain or loss over the opening position) on your portfolio in AUD [1 Mark]. The AUD value of the net expected position must be calculated using the estimated mid rates.

Explain your final portfolio position to the senior manager. Given the expected exchange rates in June, discuss whether your speculative positions will generate profits for the company. You must explain ending positions for each currency (and its AUD value using mid rates) in your portfolio? Are there any exposure to exchange rate risk? What recommendations, if any, will you make to the senior management? [1 Mark].

Currency	Opening position (current)	Position in AUD (Current)	Net trades	Net Position (expected)	Net Position in AUD (Expected)	Change in Position (AUD)
AUD	-400,000,000	-400,000,000
JPY	253,920,000,00	399,874,015.74
New position (AUD)		125,984.26

Comm / Terms	Bid	Ask	Mid
AUD/USD	0.6135	0.614	0.6138
AUD/EUR	0.5545	0.5549	0.5547
EUR/AUD	1.8022	1.8035	1.8029
AUD/GBP	0.4927	0.4928	0.4928
GBP/AUD	2.0291	2.0298	2.0295
AUD/JPY	66.1967	66.2690	66.2329
EUR/USD	1.1063	1.1064	1.1064
GBP/USD	1.2437	1.2441	1.2439
USD/JPY	107.9	107.93	107.9150
EUR/GBP	0.8879	0.8888	0.8883
EUR/JPY	119.3698	119.4138	119.3918
GBP/JPY	134.3197	134.5128	134.4163