Bankone issued $$200$ million worth of one$-$year CD liabilities in Brazilian reals aBankone issued $$200$ million worth of one$-$year CD liabilities in Brazilian reals at a rate of $6\mathrm{.}50$ percent. The exchange rate of U$.$S$.$ dollars for Brazilian reals at the time of the

transaction was $$\frac{0\mathrm{.}305}{B}r1.($LG $9-5)$

a$.$ Is Bankone exposed to an appreciation or depreciation of the U$.$S$.$ dollar relative to the Brazilian real?

b$.$ What will be the percentage cost to Bankone on this $CD$ if the dollar depreciates relative to the Brazilian real such that the exchange rate of $U.$S$.$ dollars for Brazilian reals is $$\frac{0\mathrm{.}325}{B}r1$ at the end

of the year?

c$.$ What will be the percentage cost to Bankone on this $CD$ if the dollar appreciates relative to the Brazilian real such that the exchange rate of U$.$S$.$ dollars for Brazilian reals is $$\frac{0\mathrm{.}285}{B}r1$ at the end

of the year?t a rate of $6\mathrm{.}50$ percent. The exchange rate of U$.$S$.$ dollars for Brazilian reals at the time of the transaction was $$0\mathrm{.}305/$Br $1.$ A$.$ What will be the percentage cost to Bankone on this CD if the dollar depreciates relative to the Brazilian real such that the exchange rate of U$.$S$.$ dollars for Brazilian reals is $$0\mathrm{.}325/$Br $1$ at the end of the year?