24-90 At the end of year 2,LIBOR rates are 6 percent and the exchange rate is $1.50/£.What is the net payment paid or received in dollars by the U.S.bank?
A)The U.S.bank paid $9 million and received $9 million for a net payment of $0 million.
B)The U.S.bank paid $9 million and received $15 million for a net receipt of $6 million.
C)The U.S.bank paid $12 million and received $9 million for a net payment of $3 million.
D)The U.S.bank paid $12 million and received $12 million for a net payment of $0 million.
E)The U.S.bank paid $12 million and received $15 million for a net receipt of $3 million.

Question

Quizplus · Accepted Answer

The U.S. bank paid $12 million and received $15 million, resulting in a net receipt of $3 million.

24-90 at the End of Year 2,LIBOR Rates Are 6