Explanation:
To calculate the net payment:
Since the ending value is higher than the beginning value, the dealer (who typically pays when the index value increases) makes the payment of EUR 1.86 million to the asset manager. The correct answer is option C: EUR 1.86 million | Dealer.
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a value of 10,320 at the beginning of the year and a value of 11,219 at the end of the year, what is the net payment made at the end of the year and which party makes the net payment?
A
EUR 1.86 million | Asset manager
B
EUR 2.50 million | Dealer
C
EUR 1.86 million | Dealer
D
EUR 2.50 million | Asset manager