Fifth Bank has the following balance sheet with values stated in millions of dollars.All assets are associated with corporate customers (not governments or sovereigns).Refer to Table 20-8 for associated risk weights.

\begin{array} { | l | r | l | r | } \hline \text { Cash } & \$ 80 & \text { Deposits } & \$ 550 \\\hline \begin{array} { l } \text { Municipal General } \\\text { Obligation Bonds }\end{array} & \$ 100 & & \\\hline \begin{array} { l } \text { Residential Mortgages 1-4 family } \\\text { (LTV } 60 \% - 80 \%)\end{array} & \$ 220 & \text { Long-Term Debt } & \$ 290 \\\hline \text { Commercial loans } & \$ 500 & \text { Equity } & \$ 60 \\\hline \text { Total Assets } & \$ 900 & & \$ 900 \\\hline\end{array}

In addition, Fifth Bank has off-balance sheet items as follows: (Refer to Tables 20-10 and 20-11) $50 million in commercial letters of credit (LCs),
$300 million in 3-year interest rate swaps that are in-the-money by $2 million
$50 million in 4-year forward FX contracts that are out-of-the money by $2 million
What are, respectively, the credit equivalent value of the letters of credit, interest rate swaps, and FX contracts?
A)$10.0 million; $3.5 million; $5.0 million.
B)$50.0 million; $300 million; $50.0 million.
C)$5.0 million; $1.5 million; $5.0 million.
D)$10.0 million; $1.5 million; $5.0 million.
E)$5.0 million; $3.5 million; $5.0 million.

The FASB Set Its Guidelines to Allow for the Valuation

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