A
AcadiFi
Financial Markets and ProductsMedium

In a cross-currency swap between Pinnacle Corp (USD-based) and Rheingold GmbH (EUR-based), the notional amounts of $110M and EUR 100M are exchanged at inception when the spot rate is 1.10 USD/EUR. At maturity in 3 years, the spot rate is 1.25 USD/EUR. Which statement about the final exchange is most accurate?