Refer to the Previous Question

Multiple Choice

Refer to the previous question. Assuming that 3-month LIBOR is 5.00% on the rate determination day, and the contract specified settlement in advance, describe the transaction that occurs between the dealer and Darden.

A) The dealer is obligated to pay Darden €30 864.20.
B) The dealer is obligated to pay Darden €19 359.61.
C) Darden is obligated to pay the dealer €19 359.61.
D) Darden is obligated to pay the dealer €30 864.20.
E) None of the above