1. MN National Bank make the following interest rate collar: 20 millions, 9.5% interest rate cap with a price of 1.75% of face value 20 millions, 3.75% interest rate floor with a price of 1.25% of face value If at expiration interest rates are 3.15%, how much is the profit/(loss) of MN National Bank?

2. JK Capital Markets purchased a 4% interest rate floor with a face value of 8 millions for 2% of face value. If at expiration date interest rates are 3.25%, How much is the profit/(loss) of JK Capital Markets? PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES.