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A company based in the United Kingdom has an Italian subsidiary. The subsidiary generates 26 million a year, received in equal serial installments. The iritish

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A company based in the United Kingdom has an Italian subsidiary. The subsidiary generates 26 million a year, received in equal serial installments. The iritish comparvy wishes to convert the euro cash flows to pounds twice a year. It plans to engage in a currency swap in order to lock in the exchange rate at which it can convert the euros to pounds. The current exchange rate is 155/ The foxed rate on a plain vanilla currency swap in pounds is 66 percent per year, and the five rate on a plan vanilla currency swap in eurosis 5.3 percent per year. Determine the notional principals in euros (millions XXXXXX) for a swap with semiannual payments that will help achieve the objective

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