How much lizard received using this strategy

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Reference no: EM132048635

Lizard National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional principal valued at $50 million, with an interest rate ceiling of 11 percent and LIBOR as the index representing the market interest the same time, Lizard selles - a three year floor ( 8 percent) for a fee of 1 percent of the 50$ millon principal . A libor is expected to be 7 percent ,12 percent , and 13 percent at the end of each of the next three year . 1-what is the name of this strategy ? 2- How much Lizard received ( or paid ) using this strategy?

Reference no: EM132048635

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