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When You Are Short a Position in A 3×63 \times 6

Question 2

Multiple Choice

When you are short a position in a 3×63 \times 6 FRA, you are effectively


A) Long the three-month zero-coupon bond, and long the six-month zero-coupon bond.
B) Long the three-month zero-coupon bond, and short the six-month zero-coupon bond.
C) Short the three-month zero-coupon bond, and long the six-month zero-coupon bond.
D) Short the three-month zero-coupon bond, and short the six-month zero-coupon bond.

Correct Answer:

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