Suppose the swap rate is 8% and the BBSW is 11% for the first quarter. Given that the amount hedged is $50 million, which of the following statements is TRUE about the swap settlement?

1. 	A.	The obligations of each party are zero in this quarter.
   	B.	The floating rate payer pays the fixed rate payer $4 million.
   	C.	The floating rate payer pays the fixed rate payer $375 000.
   	D.	The fixed rate payer pays the floating rate payer $4 million.
   	E.	The fixed rate payer pays the floating rate payer $375 000.