1. Consider a $80 million, 1-year tenor, semiannual-pay floating-rate equity swap initiated when the equity index is 1428 and 180-day LIBOR is 4.2%. After 90 days the index is at 1476, 90-day LIBOR is 4.5% and 270-day LIBOR is 4.7%. What is the value of the swap to the floating-rate payer?

A) -$1,917,600. C) $1,799,088.

B) $1,917,600. D) $1,799,088.