Exhibit 23.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 52

Multiple Choice

Exhibit 23.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
A company buys an interest rate cap that pays the difference between LIBOR and 8% if LIBOR exceeds 8%. Current LIBOR is 7%. The amount of the option is $2,500,000, and the settlement is every 6 months. Assume a 360 day year.
-Refer to Exhibit 23.1. Find the payoff if LIBOR closes at 7.8%.

• A)$0.00
• B)$25,000.00
• C)$50,000.00
• D)-$25,000.00
• E)-$50,000.00

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