A foreign exchange trader with a U.S. bank took a short position of £5,000,000 when the $£ exchange rate was 1.14. Subse

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899604
Joined: Mon Aug 02, 2021 8:13 am

A foreign exchange trader with a U.S. bank took a short position of £5,000,000 when the $£ exchange rate was 1.14. Subse

Post by answerhappygod »

A Foreign Exchange Trader With A U S Bank Took A Short Position Of 5 000 000 When The Exchange Rate Was 1 14 Subse 1
A Foreign Exchange Trader With A U S Bank Took A Short Position Of 5 000 000 When The Exchange Rate Was 1 14 Subse 1 (15.78 KiB) Viewed 64 times
A foreign exchange trader with a U.S. bank took a short position of £5,000,000 when the $£ exchange rate was 1.14. Subsequently, the exchange rate has changed to 119. Is this movement in the exchange rate good from the point of view of the position taken by the trader? By how much has the bank's liability changed because of the change in exchange rate? Is this movement good from the trader's position? Change in bank's liability
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”