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Q1: LIBOR: 3.2 ; Index 881
Q2 LIBOR 3.0%; Index 850
Q3 LIBOR 3.4%; Index 892.5
Q4 LIBOR 3.9%; Index 900
At the final settlement date, the equity-return payer will:
In equity swaps the sttlements take place at the end of every quarter. At the end of Q3 you would use Q3&Q2 value.
In this question they have asked what woud the equity-return payer at the final settlement date Q4 .. Hence we use Q3 & Q4 values