35. Travis Dillard, CFA, is the equity return receiver in a monthly-pay equity swap. If the equity index declines by 2% in a month, Dillard must pay the swap counterparty an amount of cash that is: A) greater than 2% of the notional amount of the swap. B) equal to 2% of the notional amount of the swap. C) less than 2% of the notional amount of the swap. 36. Consider a 1-year quarterly-pay $1,000,000 equity swap based on 90-day London Interbank Offered Rate (LIBOR) and an index return. Currert LIBOR is 3.0% and the index is at 840, Below are the index level and LIBOR at each of the four settlement dates on the swap. 91 LIBOR 3.2% | 3.0% 881 Q3 34% 892.5 Q4 3.9% 900 Q2 ndex 850 At the final settlement date, the equity-return payer will: A) receive $97. B) receive $16,903 C) pay $16,903