Under an interest rate swap, Tesla have agreed to pay 3-month LIBOR and receive a fixed rate of 3% per annum, every 3 months for 2 years, on a notional principal of $50 million. If 3-month LIBOR is 3.4% at the initiation of the contract (t = 0), then the total cashflow for Tesla after three months (at t = 3/12) will be:

Group of answer choices

A) $425,000 outflow.

B) $50,000 outflow.

C) $50,000 inflow.

D) $425,000 inflow.

E) $0.