It Is March 15,and the Next Payment Date in an Equity

It is March 15,and the next payment date in an equity swap is September 15.You contract through an equity swap ($100,000 notional) to receive Libor and pay the equity return.Libor payments use the money market convention,i.e. ,ACT/360.Suppose the equity index goes from 1011 to 1088 over this period.The six-month Libor on March 15 is 3%.What is your net cashflow on September 15?

A) $+ 1,533.33$
B) $- 7,616.22$
C) $- 6,082.89$
D) $+ 3,113.33$

Correct Answer:

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