The average duration of the loans is 10 years.The average duration of the deposits is 3 years. If at the end of the year,the exchange rate is $1.65/ ,what is the spread earned on the loan by the FI in dollars after adjusting fully for exchange rates?
A) -$3,750,000.
B) -$1,250,000.
C) +$1,250,000.
D) +$3,750,000.
Correct Answer:
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