A Chinese company enters into a currency swap in which it pays a fixed rate of 4% in Euros (EUR) and the counterparty, JP Morgan (JPM), pays a fixed rate of 6% in Chinese Yuan (CNY). The current exchange rate is CNY8.63 (per EUR). One of the notional principals of the swap is EUR 10 million. Payments are made quarterly and on the basis of 30 days per month and 360 days per year. 1. Which of the following is most likely to take place at swap initiation? The Chinese company: a) pays CNY 1.16 million to JPM. b) pays CNY 86.3 million to JPM. c) receives CNY 1.16 million from JPM. d) receives CNY 86.3 million from JPM. Which of the following is most likely to take place on the final quarterly swap settlement date at the end of the swap? The Chinese company: a) pays EUR 400,000 to JPM. b) pays CNY 87,594,500 to JPM. c) receives EUR 400,000 from JPM. d) receives CNY 87,594,500 from JPM