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What will be the call payoff in 360 days

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Reference no: EM132478288

A firm will need to take out a $2,464,701 loan 270 days from now for a 90-day interval. It purchases a call with X=5.8%. The call expires in 270 days and the underlying is a 90-day corporate loan rate.

What will be the call payoff in 360 days, if the 90-day spot rate in 270 days is 5.6%?

Round your answer to the nearest integer.

Reference no: EM132478288

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