20-61 In evaluating the risk-adjusted asset value of foreign exchange forward contracts,the value of the current exposure can be either positive or zero.

Question

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The value of the current exposure of foreign exchange forward contracts can be positive or zero, depending on the movement of exchange rates. A positive value means that the contract is in a gain position, while a zero value means that the contract is at break-even.

20-61 in Evaluating the Risk-Adjusted Asset Value of Foreign Exchange