The Utopian peso was fixed through a currency board at Ps1.00/$ throughout the 1990s. In January 2002 the Argentine Peso was floated. In January 2003 it was trading at Ps1.50/$. During that one year period Utopia's inflation rate was 68% on an annualized basis. Inflation in the United States during that same period was 4.8% annualized. In January 2003, the peso is Select one: a. Over-valued by 6.9% b. Under-valued by 6.4% c. Under-valued by 6.9% d. Under-valued by 37.6% e. Over-valued by 37.6% National Bank has a $2006 of Adjustable Rate Mortgage (ARM) as assets on its balance sheet. The interest rate on the ARM is 3%+Libor. As a result, the bank will receive floating interest. The bank is considering hedging the risk in the interest income from the assets with a three-year interest rate swap. What should be the bank's receipt and payment cash flows in the swap? Select one: a. The Bank should pay fixed and Libor fixed interest rate. b. The Bank should pay Libor and receive Libor interest rate. c. The Bank should pay Libor and receive fixed interest rate. d. The Bank should pay Libor and receive Libor+3% interest rate. e. The Bank should pay fixed and receive fixed interest rate