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A Customer Gives You GBP 25 Million at 6

Question 206

Multiple Choice

A customer gives you GBP 25 million at 6.625% same day for 7 days. Through a broker, you place the funds with a bank for the same period at 6.6875%. Brokerage is charged at 2 basis points per annum. What is the net profit or loss on the deal?


A) Profit of GBP 299.66
B) Profit of GBP 203.77
C) Loss of GBP 299.66
D) Loss of GBP 203.77

Correct Answer:

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