On a $100,000 notional equity swap contract, your firm is the receiver of equity return and the

Question:

On a $100,000 notional equity swap contract, your firm is the receiver of equity return and the payer of Libor interest. The swap is settled every half year. At the end of the current six-month interval, the equity had appreciated over the past half year by 7.6%, and the six-month Libor rate was set at 5.3% at the beginning of the period. What is your net payment under this swap? The half-year period in question has 181 days.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: