QUESTION 4 A portfolio manager entered into a swap with a dealer. The swap's notional principal is $100 million payments are to be made semi-annually, and the swap allows netting of payments. The dealer agrees to pay a fixed annual rate of 4%, while the asset manager agrees to pay the return on a stock index. The index value at initiation is 280. If the value of the stock index six months later becomes 250, the payment from the dealer to the asset manager should be closest to: $2 million $9 million $13 million $(-9) million