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Bank USA recently purchased $ 1 0 . 3 million worth of euro - denominated one - year CDs that pay 1 2 percent interest

Bank USA recently purchased $10.3 million worth of euro-denominated one-year CDs that pay 12 percent interest annually. The current spot rate of U.S. dollars for euros is $1.104/1.a. Is Bank USA exposed to an appreciation or depreciation of the dollar relative to the euro?b. What will be the return on the one-year CD if the dollar appreciates relative to the euro such that the spot rate of U.S. dollars for euros at the end of the year is $1.004/1?(Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g.,32.161))c. What will be the return on the one-year CD if the dollar depreciates relative to the euro such that the spot rate of U.S. dollars for euros at the end of the year is $1.204/1?(Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g.,32.161))ExposureReturn if dollar appreciatesReturn if dollar depreciates

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