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Golden Corporation invests in a 4.8% interest rate cap to hedge $5,000,000 in variable rate debt, whose rate is set at LIBOR plus 10 bp.

Golden Corporation invests in a 4.8% interest rate cap to hedge $5,000,000 in variable rate debt, whose rate is set at LIBOR plus 10 bp. For the 6-month period ending December 31, 2016, LIBOR is 5%. For this same period, the cap's market value increases by $6,000.

How much does Golden receive in cash to settle the cap for the 6-month period ending December 31, 2016?

a)$ 7,500

b)$ 15,000

c)$ 117,500

d)$ 125,000

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