1. What are four FX risks faced by FIs?

5. On October 15, 2021, the exchange rate of U.S. dollar per Canadian dollar was 0.8092. It is now November 15, 2021. A U.S.-made Chevrolet Tahoe costs $65,000 over the entire period. Has the U.S. dollar appreciated or depreciated in value relative to the Canadian dollar? Is it cheaper or more costly for a Canadian citizen to buy the car (converting Canadian dollars into U.S. dollars) on November 15, 2021? What is the Canadian citizens C$ gain or loss on the purchase of the car if he waits to buy on November 15, 2021?

7. On November 15, 2021, you convert $500,000 U.S. dollars to Japanese yen () in the spot foreign exchange market and purchase a one-month forward contract to convert yen into dollars. How much will you receive in U.S. dollars at the end of the month? Use the data in Table 131 for this problem.

9. What two factors directly affect the profitability of an FIs position in a foreign currency?

11. On November 12, 2021, a U.S. FI has a net exposure to Swiss francs of SFr5,500,000. The exchange rate of U.S. dollar per Swiss franc was 1.0850. It is now November 15, 2021. Calculate the FIs dollar loss/gain for this shock to the US$/SFr exchange rate.