The following are the foreign currency positions of an FI, expressed in the foreign currency:
The exchange rate of dollars per SF is 0.9301, dollars per British pounds is 1.6400, and dollars per yen is 0.010600. The following are the foreign currency positions converted to dollars.
a. What is the FI’s net exposure in Swiss francs stated in SF and $s?
b. What is the FI’s net exposure in British pounds stated in £ and $s?
c. What is the FI’s net exposure in Japanese yen stated in ¥ and $s?
d. What is the expected loss or gain if the SF exchange rate appreciates by 1 percent? State your answers in SFs and $s.
e. What is the expected loss or gain if the £ exchange rate appreciates by 1 percent? State your answers in £s and $s.
f. What is the expected loss or gain if the ¥ exchange rate appreciates by 2 percent? State your answers in ¥s and $s.
