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i need help! i am lost on all of this Assume that a bank has assets located in Germany worth 180 million earning an average
i need help! i am lost on all of this
Assume that a bank has assets located in Germany worth 180 million earning an average of 8 percent. It also holds 130 in liabilities and pays an average of 6 percent per year. The current spot rate is 150 for $1. If the exchange rate at the end of the year is 2.00 for $1: a. What happened to the dollar? Did it appreciate or depreciate against the euro ()? b. What is the effect of the exchange rate change on the net interest margin (interest received minus interest paid) in dollars from its foreign assets and liabilities? c. What is the effect of the exchange rate change on the value of the assets and abilities in dollars? Complete this question by entering your answers in the tabs below. Required A Required Required C What happened to the dollar? Did it appreciate or depreciate against the euro () Dollar effect Required B Appreciate Depreciate Remained unchanged Complete this question by entering your answers in the tabs below. Required A Required B Required What is the effect of the exchange rate change on the net interest margin (interest received minus interest paid) in from its foreign assets and liabilities? (Enter your answer in millions rounded to 2 decimal places (0.9., 32.16)) Effect of the exchange rate million red A Required C > decrease Increase Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the effect of the exchange rate change on the value of the assets and liabilities in dollars? (Enter your answers in millions rounded to 2 decimal places. (e.9., 32.16)) Assets Liabilities Effect of the exchange rate million milion quired B Red decrease increase Step by Step Solution
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