Suppose a dollar-based company is facing the following euro payments in the future: 10m in year 1, 15m in year 2, and 20m in year 3. The company would like to swap the future euro payments into fixed dollar payments in the next three years. Assume the current exchange rate is 1.17 $/ and dollar-denominated interest rate is 1% and euro- denominated interest rate is 1.2%, both annual and effective. (a) (6 points) What should be the yearly fixed payment in dollar? (b) (6 points) If one year later, the exchange rate is 1.15$/ and dollar-denominated interest rate are both 1.1%, annual and effective, what is the market value of the company's currency swap position? Suppose a dollar-based company is facing the following euro payments in the future: 10m in year 1, 15m in year 2, and 20m in year 3. The company would like to swap the future euro payments into fixed dollar payments in the next three years. Assume the current exchange rate is 1.17 $/ and dollar-denominated interest rate is 1% and euro- denominated interest rate is 1.2%, both annual and effective. (a) (6 points) What should be the yearly fixed payment in dollar? (b) (6 points) If one year later, the exchange rate is 1.15$/ and dollar-denominated interest rate are both 1.1%, annual and effective, what is the market value of the company's currency swap position