Refer to Table 9–1. (LG 9-4)

a. On June 15, 2016, you purchased a British pound–denominated CD by converting $1 million to pounds at a rate of 0.7605 pound for U.S. dollars. It is now July 15, 2016. 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. LO.1