Refer to Table 14-1. a. On June 15, 2009, you purchased a British pound-denominated CD by con-

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Refer to Table 14-1.

a. On June 15, 2009, you purchased a British pound-denominated CD by con- verting $1 million to pounds at a rate of .6110 pound for U.S. dollars. It is now July 15, 2009. Has the US. dollar appreciated or depreciated in value relative to the pound?

b. Using the information in part (a), what is your gain or loss on the invest- ment in the CD? Assume no interest has been paid on the CD. LO.1

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Financial Institutions Management A Risk Management Approach

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Authors: Anthony Saunders, Marcia Cornett

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Refer to Table 14-1. a. On June 15, 2009, you purchased a British pound-denominated CD by con-

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Financial Institutions Management A Risk Management Approach

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