equity swap

I have not seen a formula for this however if i do it through an example it will be as follows: S&P 500 at time t+1 = 5000 S&P 500 at time t = 4000 NASDAQ 500 at time t+1 = 3000 NASDAQ 500 at time t= 2500 If I enter into a swap as a S&P receiver and payer of NASDAQ how do I have to work it out Receiver - Pay or Payer - Receiver? Thanks

i dont understand the question? 5000/4000) - (3000/2500)= vaule

At (t+1), you receive: 1.000.000(Notional Amount)* 5000/4000 You pay: 1.000.000 *3000/2500

what i meant is should I do 3000/2500 -5000/4000 or the other way round as you calculated it? if I am an SP receiver and payer of NASDAQ? Is it receiver -pay ? Hope it is clear…

yeah…receive + pay -

I am sorry I did not get the last one…