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3I0-012 · Question #292

3I0-012 Question #292: Real Exam Question with Answer & Explanation

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Question

Today is the fixing date for a 6x9 FRA that you sold at 2.55%. BBA LIBOR fixes at 2.7175%. Which of the following is true?

Options

  • AYou will pay a net settlement amount
  • BYou will receive a net settlement amount
  • CThere will be an exchange of gross interest payments in 2 business days
  • DThere will be an exchange of gross interest payments in 3 months

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