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Consider the following 3-year currency swap, which involves exchangingannual interest of 2.75% on 10 million US dollars for 3.75% on 15million Canadian dollars. The CAD/USD

Consider the following 3-year currency swap, which involves exchangingannual interest of 2.75% on 10 million US dollars for 3.75% on 15million Canadian dollars. The CAD/USD spot rate is 1.52. The term structure is flat in both countries. Calculate the value of the swap in USDif interest rates in Canada are 5% and in the United States are 4%.Assume continuous compounding. Round to the nearest dollar.

B. $145,693

C. $131,967

D. $127,818

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