Refer to Table 9-1. (LG 9-4)

a. On July 19, 2010, you purchased a British pound- denominated CD by converting $1 million to pounds at a rate of .6498 pounds for U.S. dollars. It is now August 19, 2010. Has the U.S. dollar appreciated or depreciated in value relative to the British pound (see Table 9-1)?

b. Using the information in part (a), what is your gain or loss on the investment in the CD? Assume no interest has been paid on the CD.