QUESHON 3 [12 MARKS] You are a fund manager for high net-wealth clients. One of your clients expects short-term interest rates to remain low over the coming year and expects equities to offer a significantly higher return. The investor wants to shift some funds from cash to equities. The investor currently holds a portfolio of money market assets. A. Detail 3 possible solutions available to the client to achieve her aims, along with the advantagestdisadvantages associated with each method. One of these solutions should be a swap contract. [4.5 marks] B. The client decides to enter into a one-year equity swap where the counterparty agrees to pay the investor the total return to the stock index in exchange for dollar- denominated Libor on a quarterly basis. The Exhibit below summarizes the mechanics of the swap assuming that on settlement date the stock index is at 640, dividends are 3.30I index points each quarter, and current 90-day Libor is 3.25% and the notional amount of the contract is $1,000.000. Each quarter contains 91 days