22-118 What is the net gain or loss on the loan given that the exchange rates at the time of repayment were $1.63/£ in the cash market and 1.62/£ in the futures market? Assume that the futures position is opened and unwound as stated in questions 114 and 116.
A)$2,120,000 loss.
B)$1,330,000 loss.
C)$2,670,000 loss.
D)$1,330,000 gain.
E)$2,670,000 gain.

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The Answer of 22-118 What is the net gain or loss on the loan given that the exchange rates at the time of repayment were $1.63/£ in the cash market and 1.62/£ in the futures market? Assume that the futures position is opened and unwound as stated in questions 114 and 116.
A)$2,120,000 loss.
B)$1,330,000 loss.
C)$2,670,000 loss.
D)$1,330,000 gain.
E)$2,670,000 gain.

22-118 What Is the Net Gain or Loss on the Loan