Calculate the value of the exposure of the firm holding these foreign assets. The following table shows the probability distribution associated with changes in the exchange rate and in the domestic currency value of foreign assets. 
A) 0.64
B) 0.78
C) 1.56
D) 1.50
Correct Answer:
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Q21: The main advantages of value-at-risk include:
A) it
Q22: Value-at-risk is subject to a number of
Q23: A 'long' exposure to foreign exchange risk
Q24: A 'short' exposure to foreign exchange risk
Q25: The volatility of the real exchange rate
Q27: Foreign exchange transaction exposure arises:
A) if receivables
Q28: Between 2004 and 2008, the Australian dollar
Q29: Which of the following is NOT a
Q30: A long position on the U.S. dollar
Q31: Purely domestic firms are exposed to foreign
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