hassan

equity payer:
982/985 - 1= -0.0003045 = -0.3045%

LIBOR
Fixed rate: 4.4% = 0.022 per 180 days

90 4.6 -> 1/(1+.046*90/360) = 0.9886
270 4.8 -> 1/(1+0.048*270/360) = 0.9652

Received Fixed = 0.022 * (0.9886+0.9652) + 0.9652 = 1.00818366

Pay Equity, receive Fixed = 982/985 - 1.00818366 = -0.01122935

for 2 Mill Notional = -22458 ~~ Choice B

CP