Bank USA recently purchased $11 2 million worth of euro denominated one year CDs that pay 10 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)) Bank USA recently purchased $11 2 million worth of euro denominated one year CDs that pay 10 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))

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Bank USA recently purchased $11.2 million worth of euro-denominated one-year CDs that pay 10 percent interest annually. The current spot rate of U.S. dollars for

Bank USA recently purchased $11.2 million worth of euro-denominated one-year CDs that pay 10 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))

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Bank USA recently purchased $11.2 million worth of euro-denominated one-year CDs that pay 10 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))