Assume Carlton enters into a three-year fixed-for-fixed swap agreement to receive Swiss Franc and pay U.S. dollar annually, on a notional amount of $6,000,000. The spot exchange rate at the time of the swap is SF0.8/$. Which of the following statements is correct about Carlton's position on interest rates in the swaps?

	Euro-		Swiss franc		U. S. dollar		Japanese yen
Years	Bid	Ask	Bid	Ask	Bid	Ask	Bid	Ask
2	3.08	3.12	1.68	1.76	5.43	5.46	0.45	0.49
3	3.25	3.29	2.12	2.17	5.54	5.59	0.56	0.59

Select one:

a.

Carlton receives 1.76% interest rate on Swiss Franc and pays 5.46% interest rate on U.S. dollar.

b.

Carlton receives 2.12% interest rate on Swiss Franc and pays 5.54% interest rate on U.S. dollar.

c.

Carlton receives 2.17% interest rate on Swiss Franc and pays 5.54% interest rate on U.S. dollar.

d.

Carlton receives 2.12% interest rate on Swiss Franc and pays 5.59% interest rate on U.S. dollar.

e.

Carlton receives 5.59% interest rate on Swiss Franc and pays 2.12% interest rate on U.S. dollar.