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. $$\begin{array} { | l | r | }
\hline { \text { Currency } } & \text { Net Position } \
\hline \text { Canadian Dollar } & \text { +US } \$ 1,200 \
\hline \text { Euro } & \text {-US } \$ 245,900 \
\hline \text { Japanese Yen } & + \mathrm { US } \$ 505,000 \
\hline \text { Swiss Frane } & \text {-US } \$ 36,700 \
\hline \text { British Pound } & \text { +US } \$ 447,900 \
\hline
\end{array}$$ What is the portfolio weight of the Euro in this FI's portfolio of foreign currency?
A)+0.18 percent.
B)-36.62 percent.
C)+75.20 percent.
D)-5.47 percent.
E)+66.70 percent.

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. $$\begin{array} { | l | r | } 
\hline { \text { Currency } } & \text { Net Position } \
\hline \text { Canadian Dollar } & \text { +US } \$ 1,200 \
\hline \text { Euro } & \text {-US } \$ 245,900 \
\hline \text { Japanese Yen } & + \mathrm { US } \$ 505,000 \
\hline \text { Swiss Frane } & \text {-US } \$ 36,700 \
\hline \text { British Pound } & \text { +US } \$ 447,900 \
\hline
\end{array}$$ What is the portfolio weight of the Euro in this FI's portfolio of foreign currency?
A)+0.18 percent.
B)-36.62 percent.
C)+75.20 percent.
D)-5.47 percent.
E)+66.70 percent.

Quizplus · Accepted Answer

To calculate the portfolio weight of the Euro, you first sum the absolute values of all net positions to find the total portfolio value, then divide the Euro's net position by the total portfolio value and multiply by 100 to get the percentage. The total portfolio value is |+US$1,200| + |-US$245,900| + |+US$505,000| + |-US$36,700| + |+US$447,900| = US$1,236,700. The Euro's net position is -US$245,900. Thus, the portfolio weight of the Euro is (-US$245,900 / US$1,236,700) * 100 = -19.88%. However, given the options provided, it seems there might have been a calculation or transcription error in the options or in interpreting the question. The correct methodology involves dividing the specific currency's net position by the total portfolio value and then multiplying by 100 to convert it to a percentage. The correct answer should reflect the Euro's proportion of the total portfolio, but none of the provided options accurately reflects the calculated percentage based on the given data and method. Therefore, the response based on the provided options and calculations would be to reevaluate the calculation or the options provided.

The Following Are the Net Currency Positions of a U