Case

Financial Stock Return

Technology Stock Return

A

4%

13%

B

-6%

2%

C

9%

0%

D

-2%

-7%

Two investors agree to a swap agreement on a notational $5,000,000 in which investor A will pay the return on a portfolio of financial stocks while investor B will pay the return on a portfolio of technology stocks. Determine the net cash flow (and who pays it) in each of the following cases under this swap agreement: