QUESTION 12 Woland National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional principal valued at $50 million, with an interest rate cailing of 11 percent and LIBOR as the index representing the market interest rate At the same time, Woland sells a three-year floor (8 percent) for a fee of 1 percent of the 550 milion principal Assume that LIBOR is expected to be 3 percent, 12 percent, and 16 percent at the end of each of the next three years, respectively. How much Woland received for paid) using this strategy? For example, the net cash flow is 25 million dollars, type 2.5 in the box below