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# Suppose that you are fixed payer on a $80M-notional plain-vanilla 4-year interest-rate swap with rate c=3%. In additional you have a short 2-year cap position on $65M notional with rate K C =4.2% and a long 3-year floor position on a notional $60M with rate K P =2.5%. You took all these positions today, and they settle every 6 months,

Suppose that you are fixed payer on a $80M-notional plain-vanilla 4-year interest-rate swap with rate c=3%. In additional you have a short 2-year cap position on $65M notional with rate K

You took all these positions today, and they settle every 6 months, starting with a first settlement 6 months from now.

What is your net cashflow in 6 months if the current 6-month interest rate is r=2.2%?

_{C}=4.2% and a long 3-year floor position on a notional $60M with rate K^{P}=2.5%.You took all these positions today, and they settle every 6 months, starting with a first settlement 6 months from now.

What is your net cashflow in 6 months if the current 6-month interest rate is r=2.2%?

**Related Book For**

## International Financial Management

6th Edition

Authors: Cheol S. Eun, Bruce G.Resnick

ISBN: 978-0078034657

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