Question

Ebi International Bank of Japan holds U.S dollar denominated assets of $475 million and dollar-denominated liabilities of $469 million, has purchased U.S. dollars in the currency markets amounting to $75 million, and sold U.S. dollars totaling $50 million. What is Ebi’s net exposure to risk from fluctuations in the U.S. dollar relative to the bank’s domestic currency? Under what circumstances could Ebi lose if dollar prices change relative to the yen?



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  • CreatedOctober 31, 2014
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