Suppose that a U$.$S$.$ FI has the following assets and liabilities

Assets

Liabilities

$$200$ million one$-$year U$.$S$.$ loans

$(10\%$ yield$)$

$$200$ million one$-$year U$.$S$.$ CDs $(8\%$ yield$)$

$$300$ million one$-$year U$.$K$.$ loans

$($made in pounds$)(16\%$ yield$)$

$$300$ million one$-$year U$.$K$.$ CDs

$($deposits raised in pounds$)(12\%$ yield$)$

Net Return if the exchange rate over the year from $$\frac{1\mathrm{.}25}{}1$ to $$\frac{1\mathrm{.}10}{}1$

Net Return if the exchange rate over the year from $$\frac{1\mathrm{.}25}{}1$ to $$\frac{1\mathrm{.}50}{}1$