GE is currently in a short swap to sell one A-382 Engine in exchange for a payment

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GE is currently in a short swap to sell one A-382 Engine in exchange for a payment $19,573.67.

The current price of the engine is $15,248.44. The price of the engine can go up to $20,725.58 or down to $13,681.14.

The CCIR is 2.74% GE is considering selling the swap. What is the value of the swap?

Related Book For answer-question

Corporate Finance

ISBN: 978-0133097894

3rd edition

Authors: Jonathan Berk and Peter DeMarzo

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Posted Date: Mar 03, 2023 12:05 AM

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GE is currently in a short swap to sell one A-382 Engine in exchange for a payment

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To calculate the value of the swap we need to compare the current market price of the engine with th... View the full answer

Corporate Finance

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