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3I0-012 · Question #107

3I0-012 Question #107: Real Exam Question with Answer & Explanation

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Question

You sold a JPY 500,000,000 1x12 FRA at 0.35%. The settlement rate is 11-month (334-day) JPY LIBOR, which is fixed at 0.4450%. What is the settlement amount at maturity?

Options

  • AYou pay JPY 440,694
  • BYou receive JPY 440,694
  • CYou pay JPY 438,882
  • DYou receive JPY 438,882

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