Incorrect Question 17 0/ 1 pts A financial institution buys a $500 million cap of...
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Incorrect Question 17 0/ 1 pts A financial institution buys a $500 million cap of 7 percent at a premium of 0.75 percent of face value. In addition, it sells $500 million floor of 3 percent at a premium of 0.70 percent of face value. If interest rate rise to 7.25%, what is the net profit of the financial institution? $1,000,000 -$1,250,000 -$250,000 $0 $1,250,00
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