Financial Risk Manager Part 1

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Explanation:

Correct answer: B. Loss of about $61.0 dollars

The net yen exposure is:

(500{,}000 - 300{,}000) + (100{,}000 - 680{,}000) = -380{,}000

So the bank is net short ¥380,000. If the yen appreciates, a short position loses value.

The approximate dollar loss is:

-380{,}000 \times 2.0\% \div 125 = -60.80

So the expected result is a loss of about $61.0.

Explanation:

Correct answer: B. Loss of about $61.0 dollars

The net yen exposure is:

(500{,}000 - 300{,}000) + (100{,}000 - 680{,}000) = -380{,}000

So the bank is net short ¥380,000. If the yen appreciates, a short position loses value.

The approximate dollar loss is:

-380{,}000 \times 2.0\% \div 125 = -60.80

So the expected result is a loss of about $61.0.

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Currency	Assets	Liabilities	FX Bought	FX Sold
Swiss franc (CHF)	CHF 135,000	CHF 53,000	CHF 10,700	CHF 16,000
British pound (£)	£30,500	£13,400	£9,100	£12,200
Japanese yen (¥)	¥500,000	¥300,000	¥100,000	¥680,000

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MManit

Last updated: April 18, 2026 at 11:32

Loss of exactly $380,000 dollars

33.3%

Loss of about $61.0 dollars

66.7%

Gain of about $800 dollars

Gain of exactly $7,600 dollars