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Suppose that Canterbury Bank has net long position in U.S. dollars of $12 million, dollar-denominated liabilities of $125 million, U.S. dollar purchases of $300 million,
Suppose that Canterbury Bank has net long position in U.S. dollars of $12 million, dollar-denominated liabilities of $125 million, U.S. dollar purchases of $300 million, and dollar sales of $220 million. What is the current value of the bank's dollar-denominated assets? Suppose the U.S.dollar exchange value rises against the pound. Is Canterbury likely to gain or lose? WHY?
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