Question 4 Incorrect Mark 0.00 out of 1.00 Flag question Assume Carlton enters into a three-year fixed-for-fixed swap agreement to receive Swiss Franc and pay U.S. dollar annually, on a notional amount of $2,000,000. The spot exchange rate at the time of the swap is SFO.8/$. Assume that one year into the swap agreement Carlton decides it wishes to unwind the swap agreement and settle it in dollars. Assuming that a two-year fixed rate of interest on the Swiss Franc is now 2.59%, and a two-year fixed rate of interest on the dollar is now 5.90%, and the spot rate of exchange is now SF0.76/$. To Carlton, what is the net present value (in dollar) of the swap agreement? (Keep the sign and two decimal numbers.) Years 12 3 Euro- Swiss franc U. S. dollar Japanese yen Ask Bid Ask Bid Ask Bid Ask 5.46 0.45 0.49 5.59 0.56 0.59 Bid 3.08 3.12 1.68 1.76 5.43 3.25 3.29 2.12 2.17 5.54 Answer: -369881. * Question 4 Incorrect Mark 0.00 out of 1.00 Flag question Assume Carlton enters into a three-year fixed-for-fixed swap agreement to receive Swiss Franc and pay U.S. dollar annually, on a notional amount of $2,000,000. The spot exchange rate at the time of the swap is SFO.8/$. Assume that one year into the swap agreement Carlton decides it wishes to unwind the swap agreement and settle it in dollars. Assuming that a two-year fixed rate of interest on the Swiss Franc is now 2.59%, and a two-year fixed rate of interest on the dollar is now 5.90%, and the spot rate of exchange is now SF0.76/$. To Carlton, what is the net present value (in dollar) of the swap agreement? (Keep the sign and two decimal numbers.) Years 12 3 Euro- Swiss franc U. S. dollar Japanese yen Ask Bid Ask Bid Ask Bid Ask 5.46 0.45 0.49 5.59 0.56 0.59 Bid 3.08 3.12 1.68 1.76 5.43 3.25 3.29 2.12 2.17 5.54 Answer: -369881. *