Delta Corp. entered into a currency swap with its bank, providing that Delta borrows $10 million at 10% and swaps for a 12% Euro loan.

The spot exchange rate is $1.569 per Euro.

If interest only is to be repaid on an annual basis, how much would Delta pay annually to the bank?

Question 19 options:

a)Euro188,280

b)Euro637,349

c)Euro764,818

d)Euro1,882,800