Assume you are managing a bank in a country that is holding $34 million in assets and $75 million in liabilities denominated in dollars.

a). Determine the net exposure in dollars.
b). Calculate the gain or loss for each currency below given last year’s spot rate and the current spot rate respectivelyfor the U.S. $.

            Euro:                                    0.78717;    0.9048
            Krone:                                  5.7538;       6.755
            Columbian Peso:             2,535.253;     3,384.9
            Mexican Peso:                16.9566;       19.3533
            Dinar:                                0.2689;         0.30466
            Dong:                               17,476.5;      23,201.52

c). Convert each of your answers in part b to current dollar equivalents.

Answer rating: 100% (QA)

a Net Exposed Asset Liabilities Assets 75million 34mil... View the full answer