问题 单项选择题

Assume the following information relating to a fixed-for-fixed currency swap between Party C and D who hold German marks and U. S. dollars respectively. The spot exchange rate between German marks and U. S. dollars is 2.5 marks per dollar. The U. S. interest rate is 10% and the German interest rate is 8%. Party C holds 25 million marks and wants dollars. In return for the marks, Party D would pay:()

A. DM 25 million to Party C at the initiation of the swap. 

B. $10000000 to Party C at the initiation of the swap. 

C. $10000000 to Party C at the initiation of the swap.

答案

参考答案:C

解析:

In return for the marks, Party D would pay $10000000 to Party C at the initiation of the swap. DM 25000000/2.5 = $10000000.

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