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exposure to the EUR is 1.35. Duke also has a long EUR swap position on a fixed-for-fixed USD/EUR swap with a notional of USD 2,000 (assume this is an at-market swap). What is the FX equity exposure of Duke Inc.? Group of answer choices

exposure to the EUR is 1.35. Duke also has a long EUR swap position on a fixed-for-fixed USD/EUR swap with a notional of USD 2,000 (assume this is an at-market swap). What is the FX equity exposure of Duke Inc.? Group of answer choices

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Duke Inc. is an exporter of fiery hot sauce. Duke's financials are the following: Enterprise value is USD 40,000; NDUSD = 15,000; out of which NDEUR = USD 5,000 are EUR- denominated. Assume that FX business exposure to the EUR is 1.35. Duke also has a long EUR swap position on a fixed-for-fixed USD/EUR swap with a notional of USD 2,000 (assume this is an at-market swap). What is the FX equity exposure of Duke Inc.? Group of answer choices 1.44 1.19 2.04 0.89
Transcribed Image Text:Duke Inc. is an exporter of fiery hot sauce. Duke's financials are the following: Enterprise value is USD 40,000; NDUSD = 15,000; out of which NDEUR = USD 5,000 are EUR- denominated. Assume that FX business exposure to the EUR is 1.35. Duke also has a long EUR swap position on a fixed-for-fixed USD/EUR swap with a notional of USD 2,000 (assume this is an at-market swap). What is the FX equity exposure of Duke Inc.? Group of answer choices 1.44 1.19 2.04 0.89
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