A $100 million cap of 8% is available at a premium of 0.75% of face value.

A $100 million floor of 4% is also available at a premium of 0.80% of face value.

A financial institution has bought the cap and sold the floor.

If interest rates rise to 10%, what is the amount received by the financial institution after taking into account the premium?

-$2,750,000

$5,200,000

$5,450,000

$2,050,000

$6,000,000