Question: Hello, need help with this problem. Please and thank you. Assume Carlton enters into a three-year fixed-for-fixed swap agreement to receive Swiss Franc and pay

Hello, need help with this problem. Please and thank you. Hello, need help with this problem. Please and thank you. Assume

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 $2,000,000. The spot exchange rate at the time of the swap is SF0.8/$. 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 SF0.96/$. To Carlton, what is the net present value (in dollar) of the swap agreement? (Keep the sign and two decimal numbers.) Euro- Swiss franc U. S. dollar Japanese yen Years Bid Ask Bid Ask Bid Ask Bid Ask 2 3.08 3.12 1.68 1.76 5.43 5.46 0.45 0.49 3 3.25 3.29 2.12 2.17 5.54 5.59 0.56 0.59

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