In page 75 of Schweser notes 5, how did they arrive at 333,094 for the two year cap. The calculation is not shown
You can calculate the future value of the payoff of the 2-year caplet.
Here it is: 819,823
315,027
0
What you need to do is to discount back to the present date to find the value of this caplet. Just use the interest rate in year 1 and today. Remember to incorporate the probability of the payoff.
So it is: Value = [(819,823 + 315,027)/2/1.0599/1.03 + (315,027 + 0)/2/1.044/1.03]/2