A U.S. bank has 200 million in loans to corporate customers and has 50 million in deposits it owes to customers with the same maturity. The bank has also sold 100 million pounds forward. The bank's net exposure is ____________ and the bank is exposed to a (n) _________ of the British pound.

Multiple Choice

• 1. 100 million; depreciation
• 1. 50 million; depreciation
• 1. 100 million; appreciation
• 1. 50 million; appreciation