A Company Buys a 5 * 11 (Begins After Five

Multiple Choice

A company buys a 5 * 11 (begins after five months,ends after eleven months) ,100-million-Eurodollar forward rate agreement (FRA) that has an FRA rate of 4 percent per year.If the six-month bbalibor rate announced after five months is 5.5 percent per year,then (assuming 182 days in the six-month period and 360 days in the year) ,the buyer will receive on the settlement date (after five months) :

A) $491,878.60
B) $737,817.90
C) $758,333.33
D) $983,757.20
E) None of these answers are correct.