Citibank holds $39 million in foreign exchange assets and $33 million in foreign exchange liabilities. Crubank...

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Citibank holds $39 million in foreign exchange assets and $33 million in foreign exchange liabilities. Crubank also conducted

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Answer 1

Answer #1

1: net foreign assets= foreign exchange assets-foreign exchange liabilities

= $39m-$33m

= $6 million

2: net foreign exchange bought = foreign exchange contracts bought- contracts sold

= $4m-$14m

=- $10 m

3: net foreign exposure= net foreign assets+ net foreign exchange bought

= $6m-$10m

= - $4m

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Answer 2

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