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What will be the call payoff in 240 days

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Reference no: EM132478290

A firm will need to take out a $4,400,000 loan 60 days from now for a 180-day interval. It purchases a call with X=4.5%. The call expires in 60 days and the underlying is a 180-day corporate loan rate.

What will be the call payoff in 240 days, if the 180-day spot rate in 60 days is 7.7%?

Round your answer to the nearest integer

Reference no: EM132478290

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