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elf_fu elf_fu
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6 years ago
A portfolio manager enters into a total return swap. She swaps 50% of her $50 million index based portfolio for 4.5% yield bonds. If the annualized total return on the index is 2.5%, what net cash flow will the manager experience under the swap agreement?
A) + $250,000
B) -$250,000
C) + $500,000
D) -$500,000
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Derivatives Markets

Derivatives Markets


Edition: 3rd
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phuongha2892phuongha2892
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#1
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6 years ago
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elf_fu Author
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6 years ago
Thank you, thank you, thank you!
prime7105
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Yesterday
Smart ... Thanks!
Brownr40
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2 hours ago
You make an excellent tutor!
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