1. Two investors agree to a swap agreement on a notational $8,000,000 in which Steve will pay the return on a portfolio of financial stocks while Barry will pay the return on a portfolio of technology stocks. Determine the net cash flow (and who pays it) in each year under this swap agreement:

1. Two investors agree to a swap agreement on a notational $8,000,000 in which Steve will pay the return on a portfolio of financial stocks while Barry will pay the return on a portfolio of technology stocks. Determine the net cash flow (and who pays it) in each year under this swap agreement: Financial Technology Year Stock Return Stock Return 2020 7% 12% 2021 -4% 3% 2022 2% 0% 2023 -5% -14%