Bank of Detroit has estimated that its inventory of 5 million euros is subject to market risk.

Bank of Detroit has estimated that its inventory of 5 million euros is subject to market risk. The spot exchange rate is €1=$1.40. Over the past six months, the spot exchange rate has a mean 3 basis points and a standard deviation 60 basis points. Determine the bank's DEAR for this € position using a 99 percent confidence level.