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Question 6 O out of 1 points Suppose that a commodity's forward prices for 1...

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Question 6 O out of 1 points Suppose that a commodity's forward prices for 1 year and 2 years are $132 and $137. The 1-year effective annual interest rate is 4.4%, and the 2-year interest rate is 5.0%. You will pay a fixed rate of $134.43187 in a 2-year swap and receive the floating rate. Now suppose that just after you enter into the contract, the 1-year and 2-year interest rates each rise by 25 basis points. What is the value of your swap position after this change? Selected Answer: b. $0.0055 Answers: a. $-0.0055 b. $0.0055 $0.0163 C. d. $-0.0163 e. $0.0000

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