Assume an FI Holds a Foreign Exchange Position of EUR

question 24

Multiple Choice

Assume an FI holds a foreign exchange position of EUR 200 000 and further assume that the dollar per unit of EUR rate is $1.053/EUR.What is the dollar value of the position (round to two decimals) ?

• A)EUR 200,000 * 1.053 = $210,600.00
• B)EUR 200,000 * 1.053 = EUR 210 600.00
• C)EUR 200,000 / 1.053 = $189,933.52
• D)EUR 200,000 / 1.053 = EUR 189,933.52

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