For the lease option, the investment bank has offered to pay $80/bp for each basis point change in 7-year swap in January 2021 vs. now. From Part A, remember that BAs lease offer has $100/bp sensitivity to the 7-year swap...this $20/bp difference can be understood as risk compensation...

4. If the 7-year swap in January 2021 is 3%, how much does JAL receive or pay to the investment bank?

5. Continuing with 4 above, what will be the monthly lease payments made to BA?

6. What is JALs net loss/gain on this deal?

7. What kind of an instrument is this?