Question 1 Not yet answered The following are the foreign currency positions of a financial institution, expressed in the foreign currency. Currency Marked out of British pound () Assets 30,488 Liabilities 13,415 Foreign exchange purchased Foreign exchange sold 9,146 12,195 2.00 Flag question Japanese yen () 9,252,406 3,700,962 1,480,385 The exchange rate of dollar per British pound is 1.6400, and of dollars per yen is 0.0081060. The following are the foreign currency positions converted to dollars. Currency British pound () Assets $50,000 Japanese yen (Y) $75,000 Liabilities $22,001 $30,000 10,856,156 Foreign exchange purchased Foreign exchange sold $14,999 $12,000 $20,000 $88,000 What is the expected loss or gain if the Japanese exchange rate appreciates by 2 percent? State you answer in US $s. a. Gain is US $ 620 b. Loss is US $ -620 C. Loss is US $ -920 Gain is US $ 990