Intro A bank is party to a currency swap where it pays 8% per year in dollars on a principal of $80 million, and receives 5% per year in euros on a principal of 70 million. Interest payments are annual, and principals are exchanged at the maturity date of the swap, in 2.1 years. The current exchange rate is $1.09 per euro. Dollar and euro interest rates are given below for various maturities (with continuous compounding): Time (years) Dollar rate Euro rate 0.1 5.6% 2% 1.1 6.1% 2.7% 2.1 6.6% 3% Part 1 Attempt 1/4 for 10 pts. What is the forward exchange rate in 2.1 years (with continuous compounding)? 2+ decimals Submit Part 2 | * Attempt 1/4 for 10 pts. What is the net cash flow to the bank in 0.1 years (in $ million)? 2+ decimals Submit Part 3 Attempt 1/4 for 10 pts. What is the value of the currency swap to the bank (in $ million)? 2+ decimals Submit Intro A bank is party to a currency swap where it pays 8% per year in dollars on a principal of $80 million, and receives 5% per year in euros on a principal of 70 million. Interest payments are annual, and principals are exchanged at the maturity date of the swap, in 2.1 years. The current exchange rate is $1.09 per euro. Dollar and euro interest rates are given below for various maturities (with continuous compounding): Time (years) Dollar rate Euro rate 0.1 5.6% 2% 1.1 6.1% 2.7% 2.1 6.6% 3% Part 1 Attempt 1/4 for 10 pts. What is the forward exchange rate in 2.1 years (with continuous compounding)? 2+ decimals Submit Part 2 | * Attempt 1/4 for 10 pts. What is the net cash flow to the bank in 0.1 years (in $ million)? 2+ decimals Submit Part 3 Attempt 1/4 for 10 pts. What is the value of the currency swap to the bank (in $ million)? 2+ decimals Submit