7.

MN National Bank make the following interest rate collar:

20 millions, 9.75% interest rate cap with a price of 1.625% of face value

20 millions, 3.5% interest rate floor with a price of 1.5% of face value

If at expiration interest rates are 3.45%, how much is the profit/(loss) of MN National Bank?

JK Capital Markets purchased a 4.15% interest rate floor with a face value of 8 millions for 2% of face value. If at expiration date interest rates are 3.05%, How much is the profit/(loss) of JK Capital Markets?