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Unwrapping the original swap agreement

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An investor enters into a 3-year swap agreement to purchase crude oil at $42.25 per barrel. Soon after the swap is created, forward prices rise and the new 3-year swap price is $77.75. If risk-free interest rates are 2% and 3% and 4% on 1- and 2- and 3-year zero coupon government bonds, respectively, what is the gain or loss to be made from unwrapping the original swap agreement? Please round your numerical answer to the nearest integer dollar.

Reference no: EM132543977

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