Question: Answer the following questions regarding the balance sheet given below. Assume 1 $1.25. a. Is this bank net short or net long? b. What is

Answer the following questions regarding the balance sheet given below. Assume

Answer the following questions regarding the balance sheet given below. Assume 1 $1.25. a. Is this bank net short or net long? b. What is the net interest income if the value of the appreciates to $1.50? c. What is the net interest margin if the value of the depreciates to $1.10? Assets $300M in USD $700M in GBP Liabilities and Equity $800M in USD $200M in GBP Country US UK Deposit Rate 2% 4% Lending Rate 3% 5%

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