Question 7 10 pts Nittany Banking Corporation (NBC) - a US firm - has US$200 million worth of one-year loans in the US, earning an average rate of return of 6 percent. NBC also has one-year Canadian dollar loans of C$110 million, earning 8 percent in Canada. These are NBC's assets. They amount to US$300 million in total (use the spot rate to convert C$ to US$). NBC's funding source is US$300 million one-year deposits in the US, on which it's paying 4 percent interest. These are NBC's liabilities. They also amount to $300 million in total. The spot rate is C$1.10 per US$1. The one-year forward rate is C$1.14 per US$1. NBC hedges its currency risk fully using forwards. How much money did NBC loan out in Canada in Canadian dollars, and how much will it collect in one year in Canadian dollars? Hint: C$ refers to Canadian dollars, and US$ refers to US dollars. NBC will collect back all principal plus interest. NBC loaned out C$118.8 million in Canada and it will collect C$100 million in one year. NBC loaned out C$110 million in Canada and it will collect C$100 million in one year. NBC loaned out C$118.8 million in Canada and it will collect C$128.3 million in one year. NBC loaned out C$110 million in Canada and it will collect C$118.8 million in one year