Question: Using the estimated exchange rates above, calculate the implied expected bid, ask and mid rates for the remaining currency pairs in Table 3[3 Marks]. You
Using the estimated exchange rates above, calculate the implied expected bid, ask and mid rates for the remaining currency pairs in Table 3[3 Marks]. You must then calculate the value of your FX portfolio at the end of June using the calculated bid/ask rates. Report the expected value of your position in each currency in the position summary in Table 2 [2 Marks]. Finally, you must calculate expected profit/loss (gain or loss over the opening position) on your portfolio in AUD [1 Mark]. The AUD value of the net expected position must be calculated using the estimated mid rates. Explain your final portfolio position to the senior manager. Given the expected exchange rates in June, discuss whether your speculative positions will generate profits for the company. You must explain ending positions for each currency (and its AUD value using mid rates) in your portfolio? Are there any exposure to exchange rate risk? What recommendations, if any, will you make to the senior management? [1 Mark]. Please help me to answer !! struggling
| Currency | Opening position (current) | Position in AUD (Current) | Net trades | Net Position (expected) | Net Position in AUD (Expected) | Change in Position (AUD) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| AUD | -400,000,000 | -400,000,000 |
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| JPY | 253,920,000,00 | 399,874,015.74 |
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| New position (AUD) |
| 125,984.26 |
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