Question
Consider an international bank that has made a 3-month Eurodollar loan of $3,000,000 against an offsetting 6-month Eurodollar deposit. Which one of the following statements
Consider an international bank that has made a 3-month Eurodollar loan of $3,000,000 against an offsetting 6-month Eurodollar deposit. Which one of the following statements is NOT true regarding this bank? If the interest rate falls when the 3-month Eurodollar loan matures, the bank will suffer a loss. If the interest rate rises when the 3-month Eurodollar loan matures, the bank will suffer a loss. If the interest rate remains unchanged when the 3-month Eurodollar loan matures, the bank's expected profit is not affected. All of the answers are not true.
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