A German bank issues a one-year 2,000,000 CD at 2%. It uses these funds to make a one-year US $- denominated loan to ABC Corporation at 4%. Current exchange rate is $1.15/. The one-year forward rate (F$/) = $1.17/. The bank manager does not hedge the exposure to exchange rate risk. At the end of the year, the exchange rate is $1.20/. Whar are the bank's net proceeds (in s) from these transactions [Hint: remember to deduct the cost of the CD].

• + 46,667

• - 46,667

• - 4,444

• + 1,993,333