(Solved by Humans)-Estimate of Jaguar's US$ exposure? As shown in the calculations

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  1. Estimate of Jaguar's US$ exposure?


As shown in the calculations below. The average of these valuation changes is ?16,154,000 which at $1.35/? is $21,807,900. This is the gain or loss to Jaguar from an extra 1% change in the real exchange rate beginning in 1985. Therefore the US$ exposure is ?16,154,000/0.007407?/$, or $2.18 billion. Note that exposure to US$ risk is measured in terms of US$. The calculation implies that Jaguar has a $2.18 billion asset exposure, so a permanent unanticipated 1% depreciation in the US$/? rate causes a loss of roughly 1% of $2.18 billion, or $21.8 million or ?16.2 million at current exchange rates. Note that as a UK company, the final figure in ? is most relevant to Jaguar Change in $/? rate?




Change in Jaguar Valuation

+1% depreciation of $ (1.6544 to 1.6710) -?15,993,000

-1% appreciation of $ (1.6544 to 1.6379) +?16,315,000


how do i put this in my own words? not in those words






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This question was answered on: 10 May, 2025

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(Solved by Humans)-Estimate of Jaguar's US$ exposure? As shown in the calculations


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