Assume the Following Terms for an FRA: Reference Rate Is

Multiple Choice

Assume the following terms for an FRA: Reference rate is three-month LIBOR, the contract rate is 5.78%, the notional amount is for $10 million, and the number of days to settlement is 91 days. If the settlement rate is 6.33%, what compensation or payment must make to the buyer by the seller?

A) $13,878
B) $13,903
C) $13,684
D) $13,577