You are the treasurer of company B and have concluded a 5 year collar vs. 6 month Euribor.

You have bought a EUR cap at strike of 4.25% and sold EUR floor at a strike of 2.25%.

One year later the 6 month Euribor is fixed at 3.25%.

What is your borrowing cost for this 6 month period?

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You are the treasurer of company B and have concluded a 5 year collar vs. 6 month Euribor.

You have bought a EUR cap at strike of 4.25% and sold EUR floor at a strike of 2.25%.

One year later the 6 month Euribor is fixed at 3.25%.

What is your borrowing cost for this 6 month period?

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