14-82 What is the end of year profit or loss on the bank's cash position if in one year both Canadian bond rates increase to 7.5 percent and the exchange rate falls to US$0.765 per Canadian dollar? (Assume no change in U.S.interest rates.)
a.Loss of US$12,000.
b.Loss of US$75,000.
c.Profit of C$9,000.
d.Profit of US$50,000.
e.Loss of C$119,800.

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The Answer of 14-82 What is the end of year profit or loss on the bank's cash position if in one year both Canadian bond rates increase to 7.5 percent and the exchange rate falls to US$0.765 per Canadian dollar? (Assume no change in U.S.interest rates.)
a.Loss of US$12,000.
b.Loss of US$75,000.
c.Profit of C$9,000.
d.Profit of US$50,000.
e.Loss of C$119,800.

14-82 What Is the End of Year Profit or Loss