Assume that a bank has assets located in Germany worth $240$ million earning an average of $9$ percent. It also holds $140$ in liabilities and pays an average of $6$ percent per year. The current spot rate is $1\mathrm{.}50$ for $$1.$ If the exchange rate at the end of the year is $2\mathrm{.}00$ for $$1$:

a$.$ What happened to the dollar? Did it appreciate or depreciate against the euro $()?$

b$.$ What is the effect of the exchange rate change on the net interest margin $($interest received minus interest paid$)$ in dollars from its foreign assets and liabilities?

c$.$ What is the effect of the exchange rate change on the value of the assets and liabilities in dollars?