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1. A US ex porter has a Swiss franc receivable. If the Swiss franc appreciates in FX price between now and the due date of the recei suffered from this change? Why? vable, will the exporter be benefited or 2. A US importer (relative to the yen) between now and the due date o has a Japanese yen payable. If the US dollar depreciates in FX price f the payable, will the importer be benefited or suffered from this change? Why? the spot FX rate for the Chinese Yuan (CNY) changes from CNY6.2441/5 to 015/S, has Chinese Yuan depreciated against the US dollar? If the spot FX rate for the Japanese Yen (JPY) changes from $0.0084/Yen, to $0.0087/Yen, has the US dollar depreciated against Japanese Yen? 4. We observe FX rates of $o.7841/AUD and $1.1375/Euro, i) How many AUD you can get for one unit of Euro? ii) If the euro value changes to $1.1402/Euro, but the S/AUD FX rate does not change, what must the new AUD/Euro FX rate be? 5. You take a one year short position in a forward FX contract on yen at a forward rate of S0.00875/Yen. The contract amount is 300 million yen. If the spot FX rate for the yen a year from now is $0.00798/Yen, what is the US dollar gain (loss) on the short forward position on you 6. You take a long position in a two-year forward FX contract on British pounds at a forward FX rate of $1.5395/BP. The contract amount is BP2.5 million. If the spot FX rate for the pound two years from now is $1.5430/BP, what is your gain (or loss) of the contract in US dollars 7. You took a long position in U.S. dollar, buying $1,000,000 with the following bid/ask for S and JPY: Bid Ask JPY119.4350/S JPY119.0120/s Later, you closed your position, selling $1,000,000 when the bid/ask for S and JPY are as follow:: Bid Ask JPY122.1826/s PY121.0500/S a) How much JPY you paid when buying $1,000,000? b) How much JPY you received when selling $1,000,000? c) What was the profit or loss in JPY

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