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Assume a bank to receive 60,000 over the next month. The average % change in is 1.5% with a standard deviation of 1.3%. Each euro

Assume a bank to receive 60,000 over the next month. The average % change in is 1.5% with a standard deviation of 1.3%. Each euro is worth $1.15 today. With a confidence level of 95%, (2 marks) a) Calculate maximum potential loss (in $) on this cash inflow for the bank over the next month (note that Z(95%)=1.65). b) Interpret it.

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