Question: fill in tables a2, b, c. Complete this question by entering your answers in the tabs below. What are the cash flows if exchange rates



Complete this question by entering your answers in the tabs below. What are the cash flows if exchange rates are unchanged over the next thee years? (Do not found intermediate calcutations. Enter your answers millions rounded to 2 decimal piaces: (eg432.16) ) Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. A British bank issues a $140 million, three-year Eurodollar CD at a fixed annual rate of 9 percent. The proceeds of the CD are lent to a British company for three years at a fixed rate of 11 percent. The spot exchange rate of pounds for U.S. dollars is 51.50/US$. a-1. Is this expected to be a profitable transaction ex ante? a-2. What are the cash flows if exchange rates are unchanged over the next three years? b. If the U.S. dollar is expected to appreciate against the pound to 16500/$1,$1.8150/$1, and 2.0000/$1 over the next three years, respectively, what will be the cash flows on this transaction? c. If the British bank swaps U.S. dollar payments for British pound payments at the current spot exchange rate, what are the cash flows on the swap and on the entire hedged position? Assume that the U.S. dollar appreciates at the same rates as in part (b). Answer is not complete. Complete this question by entering your answers in the tabs below. Is this expected to be a prontable transaction ex ante
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