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Bank USA recently purchased $10.4 million worth of euro-denominated one year CDs that pay 10 percent interest annually. The current spot rate of US dollars

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Bank USA recently purchased $10.4 million worth of euro-denominated one year CDs that pay 10 percent interest annually. The current spot rate of US dollars for euros is $1104/E1. 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 the dollar appreciates relative to the euro such that the spot rate of US dollars for euros at the end of the year is $1004/17 (Round your answer to 3 decimal places. (eg. 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 US dollars for euros at the end of the year is $1204/61? (Round your answer to 3 decimal places. (eg. 32.161)) b Exposure elum dolor precio Retum dolor deprecies

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