What is the pv of the payoff from the swap

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ABC is currently in a swap contract. As part of the contract, ABC will sell 108 units of Corn 2 months from now at a price of $3.06 per unit, and sell 330 units of Corn 11 months from now at a price of $1.67 per unit. The yearly CCIR is 1.64.

Suppose that the spot price of corn is $8.60 and $5.87 at the time of the two deliveries.

What is the PV of the payoff from the Swap?

Margin of error here: +/- 2%

Reference no: EM132864515

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