Multiple Choice
The payoff to the holder of a long FRA on 90-day LIBOR with a fixed rate of 8.75 percent,a notional principal of $20 million if the underlying is 9 percent at expiration is
A) $12,500
B) -$12,500
C) -$12,225
D) $12,225
E) -$48,900
Correct Answer:
Verified
Correct Answer:
Verified
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