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A bank has a $ 2 0 0 , 0 0 0 loan outstanding. The bank estimates that its expected credit loss is $ 1

A bank has a $200,000 loan outstanding. The bank estimates that its expected
credit loss is $1120, and that the loss given default is a uniform random number between 60% and 80%. Find the unexpected loss from the position.
(a) $13,694.72
(b) $12,725.78
(c) $14,170.39
(d) $15,074.01

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