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What is your net cashflow in 6 months

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Reference no: EM133121197

Suppose that you are fixed payer on a $80M-notional plain-vanilla 4-year interest-rate swap with rate c=3%. In additional you have a short 2-year cap position on $65M notional with rate KC=4.2% and a long 3-year floor position on a notional $60M with rate KP=2.5%. You took all these positions today, and they settle every 6 months, starting with a first settlement 6 months from now. What is your net cashflow in 6 months if the current 6-month interest rate is r=2.2%?

Reference no: EM133121197

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