Falcor is the U.S.-based automotive parts supplier which was spun-off from General Motors. The company wishes to diversify the currency of denomination of its debt portfolio. Today, Falcor just signed a $1 million, 3-year cross currency swap to pay euro and receive dollars. Assumptions Values Swap Rates 3- year bid 3-year ask Notional principal $ 1,000,000 US dollar 2.00% 2.05% Spot exchange rate, $/ 1.1 Euros 0.42% 0.50% Using the information above to answer the following question: Assume that one year later (after the first swap of interest), Falcor decides to unwind the swap agreement. If the interest rate of euros is 1%, the interest rate of dollars is 2%, and the exchange rate is $1.2/ at the end of year 1, what is the net cash settlement of the swap agreement?