Finance, Economics, Mathematics, Physics, Quantitative Finance.
Parameters Notional Amount: $1,000,000 Strike Rate: 1.20 (USD/EUR) Maturity: 1 year Tenor of Underlying Swap: 5 years Volatility: 15% Risk-Free Rate (USD): 2% Risk-Free Rate (EUR): 1% Steps Set up the parameters for the FX swaption and Monte Carlo simulation. Build yield curves for both currencies