Question: please answer all a. What are the risks embedded in short position in EUR/USD forward for 6 months? b. Please caldculate the loss of the

please answer all a. What are the risks embedded in short

position in EUR/USD forward for 6 months? b. Please caldculate the loss

please answer all

a. What are the risks embedded in short position in EUR/USD forward for 6 months? b. Please caldculate the loss of the position as a result of market moves in two risk factors mentioned in a. You can assume the movement size and any other assumtions. The calculation might be precise or approximated. Macaulay duration of the band portiolio is 10 and the modified duration is 5. a. How this difference can be axplained? b. If we add to the portfolio a bond matured in 15 ye ars, how will les M acaulay duration and the modiFied duration change? a. What are the risks embedded in short position in EUR/USD forward for 6 months? b. Please caldculate the loss of the position as a result of market moves in two risk factors mentioned in a. You can assume the movement size and any other assumtions. The calculation might be precise or approximated. Macaulay duration of the band portiolio is 10 and the modified duration is 5. a. How this difference can be axplained? b. If we add to the portfolio a bond matured in 15 ye ars, how will les M acaulay duration and the modiFied duration change

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