Find the approximate upcoming net payment on an equity swap in which party A pays the return on stock index 1 and party B pays the return on stock index 2.The notional principal is $25 million.Stock index 1 starts the period at 1500 and goes up to 1600 at the end of the period.Stock index 2 starts the period at 3500 and goes up to 3300 at the end of the period.
A)The party paying index 1 pays about $238,000
B)The party paying index 2 pays about $238,000
C)The party paying index 2 pays about $3.095 million
D)The party paying index 1 pays about $25 million
E)The party paying index 1 pays about $3.095 million

Question

Quizplus · Accepted Answer

The Answer of Find the approximate upcoming net payment on an equity swap in which party A pays the return on stock index 1 and party B pays the return on stock index 2.The notional principal is $25 million.Stock index 1 starts the period at 1500 and goes up to 1600 at the end of the period.Stock index 2 starts the period at 3500 and goes up to 3300 at the end of the period.
A)The party paying index 1 pays about $238,000
B)The party paying index 2 pays about $238,000
C)The party paying index 2 pays about $3.095 million
D)The party paying index 1 pays about $25 million
E)The party paying index 1 pays about $3.095 million

Find the Approximate Upcoming Net Payment on an Equity Swap