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 $6,000,000. The spot exchange rate at the time of the swap is SFO.8/$. Assume that one year into the swap agreement Carlton decides it wishes to unwind the swap agreement and settle it in dollars. Assuming that a two-year fixed rate of interest on the Swiss franc is now 2.59%, and a two-year fixed rate of interest on the dollar is now 5.90%, and the spot rate of exchange is now SF0.85/$, what is the net present value of the swap agreement? Who pays whom what? Euro- Swiss franc U.S. dollar Japanese yen Bid Ask Years 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. The NPV of the Swap to Carlton is $314,399.11. The dealer pays Carlton the amount of NPV. b. The NPV of the Swap to Carlton is -$314,399.11. Carlton pays the dealer the amount of NPV. c. The NPV of the Swap to Carlton is $369,881.31. The dealer pays Carlton the amount of NPV. d. The NPV of the Swap to Carlton is -$369,881.31. Carlton pays the dealer the amount of NPV. e. The NPV is zero. No one pays. 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 $6,000,000. The spot exchange rate at the time of the swap is SFO.8/$. Assume that one year into the swap agreement Carlton decides it wishes to unwind the swap agreement and settle it in dollars. Assuming that a two-year fixed rate of interest on the Swiss franc is now 2.59%, and a two-year fixed rate of interest on the dollar is now 5.90%, and the spot rate of exchange is now SF0.85/$, what is the net present value of the swap agreement? Who pays whom what? Euro- Swiss franc U.S. dollar Japanese yen Bid Ask Years 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. The NPV of the Swap to Carlton is $314,399.11. The dealer pays Carlton the amount of NPV. b. The NPV of the Swap to Carlton is -$314,399.11. Carlton pays the dealer the amount of NPV. c. The NPV of the Swap to Carlton is $369,881.31. The dealer pays Carlton the amount of NPV. d. The NPV of the Swap to Carlton is -$369,881.31. Carlton pays the dealer the amount of NPV. e. The NPV is zero. No one pays