A German bank has exposure to the S&P500.Which of the following is true
A) The S&P 500 index should be always be measured in U.S. dollars when VaR is calculated
B) The S&P 500 index should be always be measured in euros when VaR is calculated
C) Either A or B can be done
D) The S&P 500 index should be measured in euros only if the bank has not got a U.S. subsidiary.

Question

Quizplus · Accepted Answer

All foreign assets should be measured in the domestic currency.

A German Bank Has Exposure to the S&P500