The following are the net currency positions of a U.S.FI (stated in U.S.dollars). $\begin{array}{lrrrr}
\text { Currency} &\text { Assets } & \text { Liabilities } & \text { FX Bought } & \text { FX Sold } \
\text { British pound} &24,600 & 70,000 & 170,400 & 321,000 \
\text { Yen} &31,000 & 20,400 & 250,000 & 220,000 \
\text { Swiss franc} &10,200 & 9,800 & 8,000 & 10,800
\end{array}$ What is the FI's net exposure in British pounds?
A)-45,400.
B)-150,600.
C)-196,000.
D)+105,200.

Question

The following are the net currency positions of a U.S.FI (stated in U.S.dollars). $\begin{array}{lrrrr}
\text { Currency} &\text { Assets } & \text { Liabilities } & \text { FX Bought } & \text { FX  Sold } \
\text { British pound} &24,600 & 70,000 & 170,400 & 321,000 \
\text { Yen} &31,000 & 20,400 & 250,000 & 220,000 \
\text { Swiss franc} &10,200 & 9,800 & 8,000 & 10,800
\end{array}$ What is the FI's net exposure in British pounds?
A)-45,400.
B)-150,600.
C)-196,000.
D)+105,200.

Quizplus · Accepted Answer

Net Exposurei = (FX assetsi - FX liabilitiesi) + (FX boughti - FX soldi)
 NEi = (FXAi - FXLi) + (FXCBi - FXCSi)
 NE(pound) = (24,600 - 70,000) + (170,400 - 321,000) = -45,400 - 151,600 = -196,000.

The Following Are the Net Currency Positions of a U