Answer the following questions regarding the balance sheet given below. Assume £1 = $1.40. a) Is this bank net short or net long? b) What is the net interest income (NII) if the value of the £ appreciates to $1.65? c) What is the net interest margin (NIM) if the value of the £ depreciates to $1.15? Assets Liabilities and Equity $800M in USD $200M in GBP $300M in USD $700M in GBP Country US UK Deposit Rate 6% 8% Lending Rate 7% 9%

Answer the following questions regarding the balance sheet given below. Assume £1 = $1.40. a) Is this bank net short or net long? b) What is the net interest income (NII) if the value of the £ appreciates to $1.65? c) What is the net interest margin (NIM) if the value of the £ depreciates to $1.15? Assets Liabilities and Equity $800M in USD $200M in GBP $300M in USD $700M in GBP Country US UK Deposit Rate 6% 8% Lending Rate 7% 9%

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Description: Answer the following questions regarding the balance sheet given below. Assume £1 = $1.40.a) Is this bank net short or net long?b) What is the net interest income (NII) if the value of the £ appreciates to $1.65?c) What is the net interest margin (N

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

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