Hedging interest rates using calls

pokhim

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This is with particular reference to schweser exam 3 afternoon q50. When caculating the annualized effective rate for a loan when using calls to hedge interest rates schweser has simply dividded the annualized rates by 2 or 4 depending if its quarterly of half yearly period. When i did the sums, i used ^0.5 or ^0.25. I believe my way is more accurate am i correct?
 
if it was libor - dividing by 2 and dividing by 4 is the “righter” way.
 
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