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Sevillaentersintoa$100Knotionalequityswap,inwhichSevillapaystheequityreturnandreceivesLibor.OnMarch15,the6-monthLiboris2%.LiborpaymentsuseACT/360.ThenextpaymentdateintheequityswapisSeptember15,sothereare184daysinthegivensix-monthperiod.Assumetheequityindexgoesfrom1000to1077overthisperiod.WhatisthenetcashflowonSeptember15? -$6,082.89 -$7,700.00 $1,022.22 -$6,677.78
Sevillaentersintoa$100Knotionalequityswap,inwhichSevillapaystheequityreturnandreceivesLibor.OnMarch15,the6-monthLiboris2%.LiborpaymentsuseACT/360.ThenextpaymentdateintheequityswapisSeptember15,sothereare184daysinthegivensix-monthperiod.Assumetheequityindexgoesfrom1000to1077overthisperiod.WhatisthenetcashflowonSeptember15?
-$6,082.89
-$7,700.00
$1,022.22
-$6,677.78
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