Based on Your Answers to the Previous Two Questions and a Comparison

Multiple Choice

Based on your answers to the previous two questions and a comparison of the prices of the cap and floor, what can you say about the forward rate between one and two years?

A) The forward rate is roughly equal to the strike rate of the cap and floor.
B) The forward rate is such that the mark-to-market value of the FRA at the strike rate of the cap and floor will be zero.
C) Both (a) and (b) .
D) There is not enough information to say anything about the forward rate.