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Business, 21.11.2019 01:31 hailey5129

Bank usa recently purchased $11.7 million worth of euro-denominated one-year cds that pay 10 percent interest annually. the current spot rate of u. s. dollars for euros is $1.104/€1. a. is bank usa exposed to an appreciation or depreciation of the dollar relative to the euro? b. what will be the return on the one-year cd if the dollar appreciates relative to the euro such that the spot rate of u. s. dollars for euros at the end of the year is $1.004/€1? (round your answer to 3 decimal places. (e. g., 32.161)) c. what will be the return on the one-year cd if the dollar depreciates relative to the euro such that the spot rate of u. s. dollars for euros at the end of the year is $1.204/€1? (round your answer to 3 decimal places. (e. g., 32.161))a. exposure appreciation b. return if dollar appreciates %c. return if dollar depreciates %

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