For a currency swap with $10 million notional principal,the notional principal in British pounds if the exchange rate is $1.55 is (approximately)
A)₤11.55 million
B)₤15.5 million
C)₤10 million
D)₤6.45 million
E)none of the above

Question

Quizplus · Accepted Answer

To convert $10 million to British pounds at an exchange rate of $1.55, divide $10 million by 1.55, which equals approximately ₤6.45 million.

For a Currency Swap with $10 Million Notional Principal,the Notional