The pound is worth 12569 euros and the euro is worth 15568, Ask an Expert

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The £ is worth 1.2569 euros and the euro is worth $1.5568. Statistical analysis indicates that when the euro rises 1% against the dollar, the pound rises 0.5% against the euro and vice versa. A U.S. bank has assets of £40 million that mature in one year funded with liabilities of €55 million due in 6 months. Discuss how foreign exchange risk affects the U.S. bank. Design a risk management plan to cope with the exchange rate risk exposure. Be sure to provide all details leading to your answer

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Basic Finance, Finance

Category:- Basic Finance
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