Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a foreign exchange trader with a u.s. bank took a

A foreign exchange trader with a U.S. bank took a short position of 5,000,000 when...

80.2K

Verified Solution

Question

Finance

image

A foreign exchange trader with a U.S. bank took a short position of 5,000,000 when the $/ exchange rate was 1.55. Subsequently, the exchange rate has changed to 1.61. Is this movement in the exchange rate good from the point of view of the position taken by the trader? By how much has the bank's liability changed because of the change in exchange rate? Is this movement good from the trader's position? Change in bank's liability

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

An equation is showny = (1/2)x + (3/4)Select which of the given points are contained...

Medical Sciences
1.2K views

What are the Systemic implications of defects in the CFTR channel ?

Biology
1.2K views

Femur O examples of fossils O vestigial structures O acquired traits Onatural variation Pelvis In...

Physics
1.2K views

The truth table for the circuit s shown in figure is A B A 0...

Geometry
1.2K views

Enter the correct answer in the box A triangle has side lengths of 200 units...

Basic Math
1.2K views

A 30% antifreeze solution is to be mixed with a 70% antifreeze solution to get...

Algebra
1.2K views

Write the statement as a biconditional Points in Quadrant III have two negative co Choose...

Accounting
1.2K views

Which types of quality costs are incurred once the product is produced and then found...

Accounting
1.2K views

You have been assigned to audit Superiors calculation for Basic and Dilutive EPS for the...

Accounting
1.2K views

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for...

Finance
1.2K views

emergency please !! THIS IS A BONUS QUESTION: You expect...

Accounting
1.2K views

How can a company improve each ratio? Make sure to discuss how changes in either...