The following are the foreign currency positions of an FI, expressed in the foreign currency: Currency Assets Liabilities FX Bought FX...

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Finance

The following are the foreign currency positions of an FI,expressed in the foreign currency:

CurrencyAssetsLiabilitiesFX BoughtFX Sold
Swiss franc (Sf)Sf132,600Sf54,570Sf12,750Sf17,850
British pound (£)£42,500£21,500£15,500£22,000
Japanese yen (¥)¥8,200,000¥3,500,000¥1,600,000¥9,100,000


The exchange rate of dollars for Sf is 1.02, of dollars for Britishpound is 1.31, and of dollars for yen is .00953.

The following are the foreign currency positions converted todollars:

CurrencyAssetsLiabilitiesFX BoughtFX Sold
Swiss franc (Sf)$130,000$53,500$12,500$17,500
British pound (£)$55,675$28,165$20,305$28,820
Japanese yen (¥)$78,146$33,355$15,248$86,723



a. What is the FI’s net exposure in Swiss francsstated in Swiss francs (Sf) and in dollars ($)?
b. What is the FI’s net exposure in British poundsstated in British pounds (£) and in dollars ($)?
c. What is the FI’s net exposure in Japanese yenstated in Japanese yen (¥) and in dollars ($)? (Negativeamounts should be indicated by a minus sign.)
d. What is the expected loss or gain if the Sfexchange rate appreciates by 1 percent?
e. What is the expected loss or gain if the £exchange rate appreciates by 1 percent? (Round your answerto the nearest whole dollar amount. (e.g., 32))
f. What is the expected loss or gain if the ¥exchange rate appreciates by 2 percent? (Negative amountshould be indicated by a minus sign. Round your answer to thenearest whole dollar amount. (e.g., 32))
  

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The following are the foreign currency positions of an FI,expressed in the foreign currency:CurrencyAssetsLiabilitiesFX BoughtFX SoldSwiss franc (Sf)Sf132,600Sf54,570Sf12,750Sf17,850British pound (£)£42,500£21,500£15,500£22,000Japanese yen (¥)¥8,200,000¥3,500,000¥1,600,000¥9,100,000The exchange rate of dollars for Sf is 1.02, of dollars for Britishpound is 1.31, and of dollars for yen is .00953.The following are the foreign currency positions converted todollars:CurrencyAssetsLiabilitiesFX BoughtFX SoldSwiss franc (Sf)$130,000$53,500$12,500$17,500British pound (£)$55,675$28,165$20,305$28,820Japanese yen (¥)$78,146$33,355$15,248$86,723a. What is the FI’s net exposure in Swiss francsstated in Swiss francs (Sf) and in dollars ($)?b. What is the FI’s net exposure in British poundsstated in British pounds (£) and in dollars ($)?c. What is the FI’s net exposure in Japanese yenstated in Japanese yen (¥) and in dollars ($)? (Negativeamounts should be indicated by a minus sign.)d. What is the expected loss or gain if the Sfexchange rate appreciates by 1 percent?e. What is the expected loss or gain if the £exchange rate appreciates by 1 percent? (Round your answerto the nearest whole dollar amount. (e.g., 32))f. What is the expected loss or gain if the ¥exchange rate appreciates by 2 percent? (Negative amountshould be indicated by a minus sign. Round your answer to thenearest whole dollar amount. (e.g., 32))  

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