Question
JK Capital Markets sold a 5% interest rate floor with a face value of 8 millions for 2.75% of face value. If at expiration date
JK Capital Markets sold a 5% interest rate floor with a face value of 8 millions for 2.75% of face value. If at expiration date interest rates are 3.25%, How much is the profit/(loss) of JK Capital Markets?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
