4 A portfolio manager enters into a one-year currency swap in which he pays USD fixed rate and receives GBP fixed rate. The notional principal is USD $800,000 and the settlements are annual. The current GBP/USD exchange rate is 1.30. Suppose the annual fixed rates in USD and GBP are 2.28% and 3.15% respectively, determine the cash flows (both the USD and GBP leg) at the end of one year.

\ USD leg = $18,240; GBP leg = 19,384

USD leg = $18,240; GBP leg = 32,760

USD leg = $23,712; GBP leg = 19,384

USD leg = $23,712; GBP leg = 32,760