There are two dates, Date 0 and Date 1. There are two assets, Asset 1 and Asset 2. Let S denote the price of Asset n at Date t. There are no storage costs, dividends, etc. Here, we study a swap, which is similar to a forward, but rather than agreeing to the cash purchase of an asset in the future, you agree to exchange another asset for it. Specifically, here, as in a forward, you exchange nothing today and you get one unit of S at Date 1. Except instead of paying in cash, you deliver f units of Asset 2. Here we find the "swap rate" f. 1. Keeping the Date-1 price of Asset 2 S and the swap rate f fixed, draw the payoff diagram of the long position in the swap as a function of S 2. Write down the Date-1 payoff of the long position swap in terms of S, S, and f. [5 marks] 3. Write down a replicating portfolio for the long swap. [5 marks]