The following are the net currency positions of a U.S.FI (stated in U.S.dollars).
Note: Net currency positions are foreign exchange bought minus foreign exchange sold restated in U.S.dollar terms.
$\begin{array}{l}
\begin{array}{lll}
\text {Currency}\
\text {Canaclian Dollay}\
\text {Euro}\
\text {Japane se Yen}\
\text {SWiss: Fiadc}\
\text {British Pound.}\
\end{array}
\begin{array}{lll}
\text {Net Position}\
\text {+U.S. \$ 1,200}\
\text {-U.S. \$ 245,900}\
\text {+U.S. \$ 505,000 }\
\text {-U.S. \$ 36,700}\
\text {+U.S. \$447,900}\
\end{array}
\end{array}$
What is the FI's total FX investment?
A)U.S.$671,500.
B)U.S.$1,236,700.
C)-U.S.$671,500.
D)-U.S.$1,236,700.

Question

The following are the net currency positions of a U.S.FI (stated in U.S.dollars). 
Note: Net currency positions are foreign exchange bought minus foreign exchange sold restated in U.S.dollar terms.
$\begin{array}{l}
\begin{array}{lll}
\text {Currency}\
\text {Canaclian Dollay}\
\text {Euro}\
\text {Japane se Yen}\
\text {SWiss: Fiadc}\
\text {British Pound.}\
\end{array}
\begin{array}{lll}
\text {Net Position}\
\text {+U.S.  \$ 1,200}\
\text {-U.S.  \$ 245,900}\
\text {+U.S. \$ 505,000 }\
\text {-U.S. \$ 36,700}\
\text {+U.S. \$447,900}\
\end{array}
\end{array}$
 What is the FI's total FX investment?
A)U.S.$671,500.
B)U.S.$1,236,700.
C)-U.S.$671,500.
D)-U.S.$1,236,700.

Quizplus · Accepted Answer

Net position is sum of all FX
 PP = (1,200 - 245,900 + 505,000 - 36,700 + 447,900) = $671,500 U.S. The total FX investment is the sum of the net currency positions, which is U.S.$1,200 + (-U.S.$245,900) + U.S.$505,000 + (-U.S.$36,700) + U.S.$447,900 = U.S.$671,500.

The Following Are the Net Currency Positions of a U