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Foreign Exchange Risk - Question 4-11: Assume a Financial Institution uses UK deposits (liabilities) in UK pounds () with a 1-year maturity to fund $100,000,000

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Foreign Exchange Risk - Question 4-11: Assume a Financial Institution uses UK deposits (liabilities) in UK pounds () with a 1-year maturity to fund $100,000,000 of assets (loans) in US dollars ($) with a 1-year maturity Deposit Rate 7% 4% Lending Rate 8% 5% Country United States United Kingdom Year 1: 1.00 $1.60 Year 2: 1.00 $1.80 What is the Net Interest Income (in )2 What is the return

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