Suppose an Italian bank has short$-$term borrowings of $400$ million euro and $100$ million U$.$S$.$ dollars and made long term loans of $300$ million euro and $250$ million U$.$S$.$ dollars. The euro$-$dollar exchange rate is initially $$1\mathrm{.}50$ per euro. $($LO$3)$

a$.$ Ignoring other assets and liabilities, place each item on the appropriate side of the bank's balance sheet.

b$.$ List the risks that this bank faces.

c$.$ If the euro$-$dollar exchange rate moved to $$1\mathrm{.}60$ per euro, would the bank gain or lose? Provide calculations to support your answer.