Gordon Lowenstein entered into an equity swap that calls for quarterly payments on a notional amount of $1,000,000. Lowenstein agreed to pay the rate of return on EQIndex and receive an annualized fixed rate of 6% (30/360 day year). Today is a swap payment date and the periodic quarterly return (not annualized) on EQIndex is -1.25%. What is Lowensteins net cash flow?

Group of answer choices

A) - $12,500

B) $27,500

C) $72,500

D) $15,000