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An asset manager wishes to reduce his exposure to large-cap stocks and increase his exposure to small-cap stocks. He seeks to do so using an

An asset manager wishes to reduce his exposure to large-cap stocks and increase his exposure to small-cap stocks. He seeks to do so using an equity swap. He agrees to pay a dealer the return on a large-cap index, and the dealer agrees to pay the manager the return on a small-cap index. Assume that payments are made semi-annually. The notional principal is $100,000,000

The Value of the small-cap index starts off at 689.40, and the large-cap index starts at 1130.20. In six months, the small-cap index is at 625.60, and the large-cap index is at 1251.83

What is the total amount that the asset manager will pay to (or receive from) the dealer after cash settlement ? [Note: You should use a positive number to represents the amount the asset manager pay to the dealer. You should use a negative number represents the amount that asset manager receive from the dealer]

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