pipscalper wrote:FoxerFx, based on the 02/09/07 closing prices, my calculations came to the following:

Short 100K EUR/USD

Short 130135 USD/CHF

Long 100K EUR/CHF

However, I still doubt that there is no exposure because as the rates change so are the ratios.

The FX quotes = rates = ratios. When one ratio comes up, the other must inevitably come down. Aside from numerous other aspects, from this simplistic point of view you neither gain nor lose.

Imagine that as a seesaw: the

average height above ground of the two people on the seesaw is

still the same no matter what's the particular position of any one of them:

Anyways, it is close enough.

No, it's not wishy-washy. It's exact.

Michal