Question
Firm R (receive USD and gives out RUB) and Firm U (receive RUB and gives out USD) entered into currency swap as follow, find out
Firm R (receive USD and gives out RUB) and Firm U (receive RUB and gives out USD) entered into currency swap as follow, find out the correct statement: Notional Amount: $2,000,000 Exchange rate: RUB/USD=122.75 Floating for Fixed: fixed for RUB and floating for USD. Maturity: 1 year Payment: semi-annual choose: At payment phase, the exchange rate should be 122.75. Firm U will pay USD during the payment phase. Firm R will pay RUB during the payment phase. If RUB appreciates during payment phase, then firm R will likely see an increase in the value of the currency swap.
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