Solution :-
a. What is the Fl's net exposure in Swiss francs stated in Swiss francs (Sf) and...
I he tollowing are the toreign currency positions of an H, expressed in the foreign currency Currency Swiss franc (Sf) British pound (6) Japanese yen () Assets Liabilities 51,000 EX Bought FX Sold Sf 127,500 38,168 7,869, 885 Sf Sf 10,200 11, 450 Y1, 259, 181 15,300 15,267 Y9, 233, 998 16,794 Y3,147,954 The exchange rate of dollars for Sf is 1.02, of dollars for British pound is 1.31, and of dollars for yen is 0.00953. The following are the...
The following are the foreign currency positions of an FI, expressed in the foreign currency: Currency Assets Liabilities FX Bought FX Sold Swiss franc (Sf) Sf 132,600 Sf 54,570 Sf 12,750 Sf 17,850 British pound (£) £ 42,500 £ 21,500 £ 15,500 £ 22,000 Japanese yen (¥) ¥ 8,200,000 ¥ 3,500,000 ¥ 1,600,000 ¥ 9,100,000 The exchange rate of dollars for Sf is 1.02, of dollars for British pound is 1.31, and of dollars for yen is .00953. The following...
The following are the foreign currency positions of an H. expressed in the foreign currency Currency Swiss franc (SE) British pound (£) Japanese yen (Y) Assets Sf 127,500 38,168 17,869,885 Liabilities Sf 51,000 £ 16,794 43, 147,954 FX Bought SE 10, 200 £ 11,450 Y1, 259, 181 EX Sold SE 15,300 £ 15,267 79, 233, 998 The exchange rate of dollars for Sfis 1.02, of dollars for British pound is 131, and of dollars for yen is 0.00953. The following...
Americorp. has an exposure (having unhedged positions) in both Swiss francs (SF) with expected net inflows of SF 200 mil. and in Danish kroner (DK), with expected net outflows of DK500 mil. Current exchange rates are $0.40/SF and $0.10/DK. If the dollar weakens, then Americorp. will: Select one: a. be adversely affected, because the dollar value of its SF position exceeds the dollar value of its DK position. b. remains unaffected, because of the no changes in net inflows and...
Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.3406 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.153 euros. What is the cross-rate of Swiss francs to euros (SF/Euro)? Enter your answer rounded off to FOUR decimal points.
Suppose the exchange rate between U.S. dollars and Swiss francs is SF 0.9704 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 0.9938 euros. What is the cross-rate of Swiss francs to euros (SF/Euro)? Enter your answer rounded off to FOUR decimal points.
28. Suppose you purchase a 10-year, AAA-rated Swiss bond for par that is paying an annual coupon of 6 percent. The bond has a face value of 1,000 Swiss francs (SF). The spot rate at the time of purchase is SF1.15/$. At the end of the year, the bond is downgraded to AA and the yield increases to 8 percent. In addition, the SF appreciates to SF1.05/$. What is the loss or gain to a Swiss investor who holds this...
7. Suppose the exchange rate between U.S. dollars and Swiss francs is $1.00 = 1.50 Swiss franc and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.15 euros. What is the cross rate of the Swiss franc to the euro (SF/euro)?
A... We know that the yen and the swiss franc have a 100yen/sf 1 exchange rate, meaning one swiss franc buys 100 yen in the spot ER market. The 1 year forward rate is 108 yen/swiss franc, or 1 franc buys 108 yen in the forward market. If the swiss franc has an interest rate of .11, what should the yen rate be for IPT (interest parity theory) to be attained? If the yen rate were 16%, would there be...
On December 18, 2017, Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00 = CHF 1. On December 18, 2017, the book and fair values of the subsidiary’s assets and liabilities were: Cash CHF 813,000 Inventory 1,313,000 Property, plant & equipment 4,013,000 Notes payable (2,126,000 ) Stephanie prepares consolidated financial statements on December 31, 2017. By that...