SpyAli

Ok, Diversified is located in arubatia. My "default position" to my own local currency is a sensitivity of 1. However, some firms, such as importers/exporters, will have more or less sensitivity to their own currency.

If the currency moves by 10%, but the firm only moves by 6%, this means i'm not in lock step with the currency. There is a 60% relationship between the sensitivity of firm value to the sensitivity of the local currency.

So 1 (default position) - (.60) = .4

SOmeone please comment on my post, as i also struggle with this area and dont want to be providing false info...