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29. An FI has a 1-year 8-percent US$160 million loan financed with a 1-year 7-percent UK£100 million CD. The current exchange rate is $1.60/£. What is the cash spread earned by the FI if at the end of the year the £ is trading at $1.63/£ in the cash market? Again adjust for all exchange rate changes. A. $1,610,000 gain. B. $2,670,000 gain. C. $2,390,000 loss. D. $1,610,000 loss. E. $2,670,000 loss.
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