$10.$ A bank has a short position of GBP $500,000$ in British pounds. The current exchange rate is $$1\mathrm{.}45/$E$.$ What is the VAR using a $99\%$ level of confidence if the standard deviation has been estimated at $50$ basis points?Assume a $10-$day time horizon.VAR $=($GBP$500,000$ x $$1\mathrm{.}45)\backslash$times $(2\mathrm{.}33\backslash$times $0\mathrm{.}0050)\backslash$times $/10=$ $$725,000\backslash$times $0\mathrm{.}01165$ x V$10=$$$26,709\mathrm{.}39$