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 $6,000,000. The spot exchange rate at the time of the swap is SF0.8/$. What is the (present) value of the swap to Carlton (or the dealer) at time 0?

	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. The NPV of the Swap to Carlton is -$369,881.31.

b. The NPV of the Swap to Carlton is $314,399.11.

c. The NPV of the Swap to Carlton is $369,881.31.

d. The NPV of the Swap to Carlton is -$314,399.11.

e. The NPV is zero.