Consider a U $$\begin{array} { l c } \text { Exposed assets } & ¥ 700,000,000 \\\text { Exposed liabilities } & ¥ 500,000,000\end{array}$$

question 56

Multiple Choice

Consider a U.S.-based MNC with manufacturing activities in Japan.The result of a change in the ¥-$ exchange rate on the assets and liabilities of the consolidated balance sheet is: $$\begin{array} { l c } \text { Exposed assets } & ¥ 700,000,000 \\\text { Exposed liabilities } & ¥ 500,000,000\end{array}$$ Ignoring transaction exposure in the yen,the translation exposure will indicate a possible need for a "derivatives hedge" of

• A)short position in ¥200,000,000 currency futures.
• B)long position in ¥200,000,000 currency futures.
• C)either a) or b)
• D)none of the above

---

Definitions:

BorderLayout

A layout manager for Java GUIs that arranges components to fit in five regions: north, south, east, west, and center.

Regions

Regions refer to a defined area or segment within a larger space or context, often used in programming for managing or isolating specific parts of code or data.