Appreciation of the yen against the dollar

Assignment Help Finance Basics
Reference no: EM131710557

X-IM Bank has ¥14 million in assets and ¥23 million in liabilities and has sold ¥8 million in foreign currency trading. What is the net exposure for X-IM? For what type of exchange rate movement does this exposure put the bank at risk?

The net exposure would be ¥14 million - ¥23 million - ¥8 million = -¥17 million. This negative exposure puts the bank at risk of an appreciation of the yen against the dollar. A stronger yen means that repayment of the net position would require more dollars

As the answer mentioned that the risk of an appreciation of the yen against the dollar. Why?

Reference no: EM131710557

Questions Cloud

Discuss initiating structure and consideration : he Ohio State Studies involved research on only two dimensions - initiating structure and consideration
Resolve moral issues involving cyber technology : Are any of the four traditional ethical theories we examined-i.e., consequence-based, duty based, contract-based, and character-based-adequate to handle moral.
Yield to maturity remains constant over time : What will happen to the bond price in five years, if the bond's yield to maturity remains constant over time?
What is the present value of cash flow stream : Four years from now you will receive the first of tenannual $15,000 payments. The interest rate is 10%. What is the present value of this cash flow stream
Appreciation of the yen against the dollar : As the answer mentioned that the risk of an appreciation of the yen against the dollar. Why?
Discuss the contemporary middle east : To what extent do you believe that the Prophet Muhammad's sayings are applicable to the lives of Muslims residing in the contemporary Middle East
What were the proceeds from her sale : She reinvested all dividends. So far, the NAV for her investment has risen from $8/share to $13.25/share. Late in the year she sold 60 shares at $13.25.
Assess don gotterbarn arguments for the claim : Assess Don Gotterbarn's arguments for the claim that computer ethics is, at bottom, a field whose primary concern should focus on moralresponsibility issues.
Compare the insights into socialization : Compare the insights into socialization provided by Charles Horton Cooley, George Herbert Mead, and Jean Piaget.

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain why you would change your nominal required rate

Explain why you would change your nominal required rate of return if you expected the rate of inflation to go from 0 (no inflation) to 4 percent. Give example of what would happen if you did not change your required rate of return under these cond..

  Define informal restructuring; reorganization in bankruptcy

Define each of the following terms: a. Informal restructuring; reorganization in bankruptcy b. Assignment; liquidation in bankruptcy; fairness; feasibility

  Increased level of activities

If the expansion is accepted, the company feels it should increase its year-end cash balance to $8 million because of the increased level of activities. For planning purposes, assume no other cash flow changes for next year.

  Make a profit from triangular arbitrage

Show how you can make a profit from triangular arbitrage and what your profit would be if you have $1,000,000.

  What items appear under other comprehensive income loss

What items appear under Other Comprehensive Income (Loss)? What is the account and the amount of the bottom line item on the Statement (or Consolidated Statement) of Comprehensive Income?

  Determine seduak optimal capital structure

Seduak has estimated the costs of debt and equity capital for various proportions of debt in its capital structure.

  On initiating or expanding business in a particular

on initiating or expanding business in a particular country or region of the world. describe the strategyies used to

  Degrees of freedom for the denominator

The critical value for a one-tailed right F -test is 2.57, when α = 0.025, the degrees of freedom for the numerator = 15, and the degrees of freedom for the denominator = 20.

  Describe opportunity cost rate

What is an opportunity cost rate, is it used in the discounted cash flow analysis.

  Analyze a change in return on common equity

Analyzing a Change in Return on Common Equity (Easy) The following numbers were calculated from the financial statements for a firm for 2012 and 2011.

  This investment will cost the firm 150000 today and the

the firm has has a potential future projects that will generate cash flows of 32000 per year in years 1 through 4 35000

  Policy or guideline from an external source

Locate an example of a policy or guideline from an external source to a healthcare organization. Explain how this policy or guideline may be a constraint to a healthcare organization's planning, or how it may shape the healthcare organization's ph..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd