FIX G For pr Calend Tabla G sin nu Z Zoom New T 2 My Re2 Findin 543357/viewContent/6136563/View Bi - + Automatic 200m FNCE 445 Problem Set #4 For problem 1-4, assume oil forward prices for 1 year, 2 years, and 3 years are 20, 21, and 22. The 1-year effective annual interest rate is 6%, the two year rate is 6.5%, and the 3-year rate is 7%. 1. What is the 3 year oil swap price? 2. Suppose the dealer is paying the fixed price and receiving floating. What position in oil forward contracts will hedge oil price risk in this position? 3. Suppose you are the fixed-rate payer in the swap. How much have you overpaid relative to the forward price after the first swap settlement? What is the cumulative overpayment after the second swap payment? What is the cumulative overpayment after the last payment? (Be sure to account for interest.) 4. Suppose you are a dealer who is paying the fixed oil price and receiving the floating price. Suppose you enter into the swap and immediately DELL N How 3