The current platinum price is $1200 per ounce, and annual effective spot rates for 1-year, 2-year

and 3-year terms are 2.1%, 2.3% and 2.5%, respectively. A swap contract is set up to exchange the

market price per ounce of platinum with a fixed amount P at the end of each year for 3 years.

Immediately after the payment at the end of year-1, the platinum price is $1250 per ounce, and

annual effective spot rates for 1-year and 2-year terms are 2.4% and 2.6%, respectively. Calculate

the value of swap for the party paying floating-leg.