For a currency swap with $10 million notional amount,the notional amount 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 find the notional amount in British pounds, divide the dollar amount by the exchange rate: $10 million / $1.55 ≈ ₤6.45 million.

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