A portfolio manager enters into an equity swap with a swap dealer. The portfolio manager agrees to pay the return on the Value Index and receive the return on the Growth Index. The swap's notional principal is $50 million, and the payments will be made semi-annually. The levels of the equity indices are as follows:

The net amountowedtothe portfolio manager aftersix monthsis closest to:

A.$1,427,494.

B.$1,007,326.

C.$587,158.