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Bank USA just made a one-year $10 million loan that pays 10 percent interest annually. The loan was funded with a Swiss franc-denominated one-year deposit
Bank USA just made a one-year $10 million loan that pays 10 percent interest annually. The loan was funded with a Swiss franc-denominated one-year deposit at an annual rate of 6 percent. The current spot rate is SF1.05/$1. Bank USA is exposed to A SF appreciation relative to $ B SF depreciation relative to $ $ appreciation relative to SF D $ depreciation relative to SF E A and D are correct
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