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Given the following information on foreign currency positions (all in $ thousands) for Eastpac Bank. Currency Assets Liabilities FX Bought FX Sold Euro 270 70 170 320 Yen 90 20 20 100 220 What is Eastpac Bank's net exposure (in $ thousands) in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate? O a. -50, exposed to the depreciation in Japanese Yen b. +50, exposed to the appreciation in Japanese Yen Oc. 0, not exposed to the fluctuation in Japanese Yen exchange rate Od. -50, exposed to the appreciation in Japanese Yen e. +50, exposed to the depreciation in Japanese Yen

Given the following information on foreign currency positions (all in $ thousands) for Eastpac Bank. Currency Assets Liabilities FX Bought FX Sold Euro 270 70 170 320 Yen 90 20 20 100 220 What is Eastpac Bank's net exposure (in $ thousands) in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate? O a. -50, exposed to the depreciation in Japanese Yen b. +50, exposed to the appreciation in Japanese Yen Oc. 0, not exposed to the fluctuation in Japanese Yen exchange rate Od. -50, exposed to the appreciation in Japanese Yen e. +50, exposed to the depreciation in Japanese Yen

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Given the following information on foreign currency positions (all in $ thousands) for Eastpac Bank. Currency Assets Liabilities FX Bought FX Sold Euro 270 70 170 320 Yen 90 90 20 20 100 220 What is Eastpac Bank's net exposure (in $ thousands) in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate? a. -50, exposed to the depreciation in Japanese Yen b. +50, exposed to the appreciation in Japanese Yen c. 0, not exposed to the fluctuation in Japanese Yen exchange rate d. -50, exposed to the appreciation in Japanese Yen e. +50, exposed to the depreciation in Japanese Yen
Transcribed Image Text:Given the following information on foreign currency positions (all in $ thousands) for Eastpac Bank. Currency Assets Liabilities FX Bought FX Sold Euro 270 70 170 320 Yen 90 90 20 20 100 220 What is Eastpac Bank's net exposure (in $ thousands) in Japanese Yen and its exposure to the fluctuation in the AU$/Japanese Yen exchange rate? a. -50, exposed to the depreciation in Japanese Yen b. +50, exposed to the appreciation in Japanese Yen c. 0, not exposed to the fluctuation in Japanese Yen exchange rate d. -50, exposed to the appreciation in Japanese Yen e. +50, exposed to the depreciation in Japanese Yen
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