Exhibit 23.8 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 9

Multiple Choice

Exhibit 23.8
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
An international investment firm buys an interest rate cap that pays the difference between LIBOR and 6% if LIBOR exceeds 6%. Current LIBOR is 5%. The amount of the option is $1,500,000, and the settlement is every 3 months. Assume a 360 day year.
-Refer to Exhibit 23.8. Find the payoff if LIBOR closes at 6.3%.

• A)-$45,000
• B)-$11,250
• C)$0
• D)$11,250
• E)$45,000

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A method of evaluating an individual's grasp and application of syntax, punctuation, and the structural aspects of a language.