$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|\}\backslash$hline & & Outcome & & $\backslash \backslash \backslash$hline Start of Round $4$ & Allocation & $1$ & Income & Expense $\backslash \backslash \backslash$hline Cash & $\backslash$$ $315,850\mathrm{.}00$ & $0\mathrm{.}00\backslash \%$ & $\backslash$$ $-$ & $\backslash$$ $-\backslash \backslash \backslash$hline Securities & $\backslash$$ $756,394\mathrm{.}27$ & $0\mathrm{.}25\backslash \%$ & $\backslash$$ $1,890\mathrm{.}99$ & $\backslash$$ $-\backslash \backslash \backslash$hline Consumer Loans & $\backslash$$ $4,000,000\mathrm{.}00$ & $6\mathrm{.}00\backslash \%$ & $\backslash$$ $240,000\mathrm{.}00$ & $\backslash$$ $-\backslash \backslash \backslash$hline Residential Mortgage & $\backslash$$ $4,000,000\mathrm{.}00$ & $2\mathrm{.}00\backslash \%$ & $\backslash$$ $80,000\mathrm{.}00$ & $\backslash$$ $-\backslash \backslash \backslash$hline C$\backslash$&I & $\backslash$$ $-$ & $3\mathrm{.}00\backslash \%$ & $\backslash$$ $-$ & $\backslash$$ $-\backslash \backslash \backslash$hline Total Loans & $\backslash$$ $8,000,000\mathrm{.}00$ & & & $\backslash \backslash \backslash$hline Deposits & $\backslash$$ $6,000,000\mathrm{.}00$ & $2\mathrm{.}00\backslash \%$ & $\backslash$$ $-$ & $\backslash$$ $120,000\mathrm{.}00\backslash \backslash \backslash$hline Borrowed & $\backslash$$ $6,000,000\mathrm{.}00$ & $1\mathrm{.}00\backslash \%$ & $\backslash$$ $-$ & $\backslash$$ $60,000\mathrm{.}00\backslash \backslash \backslash$hline Total Financing & $\backslash$$ $12,000,000\mathrm{.}00$ & & & $\backslash \backslash \backslash$hline Total Income and Expense & & & $\backslash$$ $321,890\mathrm{.}99$ & $\backslash$$ $180,000\mathrm{.}00\backslash \backslash \backslash$hline Retained Earnings & $\backslash$$ $72,244\mathrm{.}27$ & & & $\backslash \backslash \backslash$hline & & & & $\backslash \backslash \backslash$hline $\backslash$multicolumn$\{4\}\{|$c$|\}\{$Balance Sheet: End of Round $3\}$ & $\backslash \backslash \backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Assets$\}$ & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Liabilities $\backslash$& Equity$\}$ & $\backslash \backslash \backslash$hline Cash & $\backslash$$ $455,850\mathrm{.}00$ & Deposits & $\backslash$$ $6,000,000\mathrm{.}00$ & $\backslash \backslash \backslash$hline Securities & $\backslash$$ $758,285\mathrm{.}26$ & Borrowed & $\backslash$$ $6,000,000\mathrm{.}00$ & $\backslash \backslash \backslash$hline Lending & & Total Liabilities & $\backslash$$ $12,000,000\mathrm{.}00$ & $\backslash \backslash \backslash$hline Cons.Loans$*$ & $\backslash$$ $4,000,000\mathrm{.}00$ & & & $\backslash \backslash \backslash$hline Residential Mortgage$*$ & $\backslash$$ $4,000,000\mathrm{.}00$ & Comm Stock & $\backslash$$ $1,000,000\mathrm{.}00$ & $\backslash \backslash \backslash$hline C$\backslash$&$/*$ & $\backslash$$ $-$ & Ret Earnings & $\backslash$$ $214,135\mathrm{.}26$ & $\backslash \backslash \backslash$hline Total Lending & $\backslash$$ $8,000,000\mathrm{.}00$ & Total Equity & $\backslash$$ $1,214,135\mathrm{.}26$ & $\backslash \backslash \backslash$hline & & & & $\backslash \backslash \backslash$hline Total Assets & $\backslash$$ $9,214,135\mathrm{.}26$ & Total L$\backslash$&E & $\backslash$$ $13,214,135\mathrm{.}26$ & $\backslash \backslash \backslash$hline & & & & $\backslash \backslash \backslash$hline $\backslash$end$\{$tabular$\}$ In Round $4$ you have expanded opportunities to lend overseas and fund your operations in the Eurodollar market and in foreign currencies. Specifically, you will now be able to $1)$ make and fund C$\backslash$&I loans denominated in Euros and$/$or $2)$ fund your US$\backslash$$ operations in Eurodollars.

$3.$ Revise your asset allocation and funding source decisions for Round $4$ in light of these new lending and funding alternatives and the possible outcomes $(1$ through $7).$

a$.$ Notice that the outcomes in the LMS assume euro interest rates are not perfectly correlated with U$.$S$.$ dollar interest rates.

b$.$ Observe that sourcing US$\backslash$$ in the Eurodollar market is generally cheaper than sourcing dollars domestically, with the exception of an occurrence of a liquidity crisis.

c$.$ Also note that all balance sheet items are ultimately denominated in US$\backslash$$$.$

d$.$ Open the embedded excel spreadsheet and load the items from the End of Round $3$ but also make allocations in euros and Eurodollars. Make sure your balance sheet balances correctly.