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

question 31

Multiple Choice

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.

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Definitions:

Oppressed Creature

An oppressed creature refers to an individual or group that experiences systematic injustices, limitations, and hardships imposed by dominant societal forces or governing bodies.

Opium

A narcotic drug extracted from the seed capsules of the poppy plant, used historically as a pain reliever and recreationally for its euphoric effects.

Profane

Elements of the everyday world that do not inspire or motivate.

Sacred

Describing something regarded with immense respect or worshipful veneration, often associated with religious or spiritual significance.