Kizspy | Question: 46
(Choose 1 answer)
(27618) Find the approximate upcoming net payment on an equity swap in which party A pays the return on stock index 1 and party B pays the return on stock index 2. The notional amount is $25 million. Stock index 1 starts the period at 1500 and goes up to 1600 at the end of the period. Stock index 2 starts the period at 3500 and goes up to 3300 at the end of the period.
A. The party paying index 1 pays about $238,000
B. The party paying index 2 pays about $238,000
C. The party paying index 2 pays about $3.095 million
D. The party paying index 1 pays about $25 million
E. The party paying index 1 pays about $3.095 million
