The Average Duration of the Loans Is 10 Years If at the End of the Year, the Exchange Rate

Multiple Choice

The average duration of the loans is 10 years.The average duration of the deposits is 3 years. $$\begin{array} { | l | r | l | r | } \hline \text { Consumer loans } & \$ 50 \text { million } & \text { Deposits } & \$ 235 \text { million } \\\hline \text { Commercial Loans } & \$ 200 \text { million } & \text { Equity } & \$ 15 \text { million } \\\hline \text { Total Assets } & \$ 250 \text { million } & \text { Total Liabilities \& Equity } & \$ 250 \text { million } \\\hline\end{array}$$ If at the end of the year, the exchange rate is $1.65/?, what is the spread earned on the loan by the FI in dollars after adjusting fully for exchange rates?

A) -$3,750,000.
B) -$1,250,000.
C) +$1,250,000.
D) +$3,750,000.
E) +$5,000,000.