Bank loans for $ 1,000 are in dollars, the company wants to know what would be the worst loss it could present in a year with 99% confidence due to an increase in the exchange rate. For the above, it has the following monthly information:

 

onth	Exchange rate
January	13.7
February	13.4
March	13.8
April	14.0
May	14.5

 

Complement the following statements:

a) The trend of the exchange rate is?

b) The expected loss for the exchange rate of one month is?

c) The expected exchange rate for the month of June is?

d) The volatility of the exchange rate is?

e) The worst increase in the exchange rate that could occur in a year with 99% confidence is ____, which would imply that the exchange rate is at _____ and would generate losses of $ _______ in a year.

Answer rating: 100% (QA)

To answer the questions lets analyze the given information a The trend of the exchange rate Based on ... View the full answer