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The following are the foreign currency positions of an FI, expressed in dollars.

Currency	Assets	Liabilities	FX bought	FX sold
Euro (EUR)	$125 000	$50 000	$10 000	$25 000
British pound (GBP)	50 000	24 000	15 000	20 000

What is the expected loss or gain if the exchange rate depreciates by 2 per cent?

Select one:

a.

Loss of $230.

b.

Loss of $420.

c.

Gain of $420.

d.

Gain of $230.