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A firm will need to take outa$6,000,000loan60daysfrom now fora180-dayinterval.Itpurchases a call with X=5.4%.The callexpires in60days and the underlying is a180-daycorporate loan rate. What will be

A firm will need to take outa$6,000,000loan60daysfrom now fora180-dayinterval.Itpurchases a call with X=5.4%.The callexpires in60days and the underlying is a180-daycorporate loan rate.

What will be thecall payoff in 240days,if the180-day spot rate in 60 days is 7.7%?

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