Analyze_This

Nope, the payoffs originally are coming at 180, 360, 540, 720 and they will still be coming at those dates from the original. Draw a line from the starting point of the agreement for these values. Now 120 days in, move the new starting point for valuation to 120 along that line. It is now 60 days from the 1st payoff, 240 to the second, etc. The contract payoff dates are the same and the amounts, but the time value has changed so one party may have value derived as a zero sum game from the other party, whereas the value for each at initiation is 0.