What would be the financial institutions net savings

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Reference no: EM13880980

An interest rate cap of 7% with a notational value of $18.9 million is available for a premium of 0.58%. The same notational value 3% floor is available for a premium of 0.64%.

If current interest rates are at 8%, what would be the a financial institution's net savings if they had written the cap and purchased the floor?

Enter your answer as a full dollar value (not in millions) with no cents. Precede losses with a negative sign

Reference no: EM13880980

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