On December 31, 2015 Historic Bank had long positions of 200,000,000 Japanese Yen and 50,000,000 Swiss Francs.The closing exchange rates were ¥92/$ and Swf1.89/$. What were the respective positions of the two currencies in dollars?

Question

Quizplus · Accepted Answer

To calculate the positions of the two currencies in dollars, we need to use the given exchange rates.

For Japanese Yen:

200,000,000 yen * (1/92) dollars/yen = $2,173,913

For Swiss Francs:

50,000,000 francs * (1/1.89) dollars/franc = $26,455,026

Therefore, the respective positions of the two currencies in dollars are $2,173,913 and $26,455,026.

Answer choice C is the correct answer.

On December 31, 2015 Historic Bank Had Long Positions of 200,000,000