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Can you explain this? http://www.oanda.com/currency/historical-rates/ On March 20, 2019, Stanford, LTD., issued a $100 million, one-year maturity CD denominated in Euros. On the same date,

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http://www.oanda.com/currency/historical-rates/

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On March 20, 2019, Stanford, LTD., issued a $100 million, one-year maturity CD denominated in Euros. On the same date, $60 million was invested in a Euro (6)- denominated loan and $40 million was invested in a U.S. Treasury bill. The exchange rate on March 20, 2019 was 60.8795/$. Assume no repayment of principal, and the actual exchange rate on September 16, 2019 was 60.9026/$. The table below shows the balance sheets in Dollars and Euros for both March 20, 2019 and September 16, 2019 for Stanford, LTD. What was Stanford's gain or loss from its exposure to foreign currency risk? This problem is similar to problem 7-25 in your text. Exchange rates may be found at: http://www.oanda.com/currency/historical-rates/ Solution matrix for problem At Issue Date-3/20/2019: 60.8795/S Dollar Transaction Values (in millions) Euro Transaction Values (in millions) Euro Euro Euro Euro Loan $60 CD $100 Loan CD E U.S T-bill $40 U.S. T-bill $100 $100 Today 9/16/2019: 60.9026/$ Dollar Transaction Values (in millions) ETransaction Valmes (in millions) Euro Euro Euro Euro Loan $ CD** S Loan U.S. T-bills U.S. T-bill* eth (th ct CD E E Gain or Loss of $ Gain or Loss of E

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