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Consider the following 3-year currency s...

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题目

Consider the following 3-year currency swap, which involves exchanging annual interest of 2.75% on 10 million US dollars for 3.75% on 15 million Canadian dollars. The spot rate is 1.52 (1.52 CAD per USD). The term structure is flat in both countries. Calculate the value of the swap in USD if interest rates in Canada are 5% and in the United States are 4%. Assume continuous compounding. Round to the nearest dollar.

选项

A.$152,000

B.$145,693

C.$131,967

D.$127,818

答案

C

解析

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