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QUESTION

An asset manager wishes to reduce his exposure to large-cap stocks and increase his exposure to small-cap stocks.He seeks to do so using an equity...

at 1251.83

What is the total amount that the asset manager will pay to (or receive from) the dealer? [Note: You should use a positive number to represents the amount the asset manager pay to the dealer. You should use a negative number represents the amount that asset manager receive from the dealer]

  1. A US company enters into a currency swap in which pays a fixed rate of 5.5% in euros and the counterparty pays a fixed rate of 6.75% in dollars. The notional principals are $100,000,000 and €116,500,000 million. Payments are made semi-annually and on the basis of 30 days per month and 360 days per year.

Calculate the semi-annual payments that the US company receives from its counterparty.

  1. A US company enters into a currency swap in which pays a fixed rate of 5.5% in euros and the counterparty pays a fixed rate of 6.75% in dollars. The notional principals are $100 million and €116.5 million. Payments are made semi-annually and on the basis of 30 days per month and 360 days per year.

For the initial exchange of payments that take place at the beginning of the swap, is the US company paying USD or EURO to the counterparty? [Type in USD or EURO in the answer box]

  1. A US company enters into a currency swap in which pays a fixed rate of 5.5% in euros and the counterparty pays a fixed rate of 6.75% in dollars. The notional principals are $100,000,000 and €116,500,000 million. Payments are made semi-annually and on the basis of 30 days per month and 360 days per year.

Calculate the initial exchange of payments that the US company pays to the counterparty.

  1. A US company enters into a currency swap in which pays a fixed rate of 5.5% in euros and the counterparty pays a fixed rate of 6.75% in dollars. The notional principals are $100 million and €116.5 million. Payments are made semi-annually and on the basis of 30 days per month and 360 days per year.

Calculate the final exchange of payments that 

  1. pay receive 
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