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3I0-012 · Question #436

From the following CAD rates: 1M (31-day) CAD deposit 0.95% 1x2 CAD (30-day) FRA 1.21% 2x3 CAD (31-day) FRA 2.01% Calculate the 3-month implied cash rate.

The correct answer is B. 1.39%. See the full explanation below for the reasoning.

Question

From the following CAD rates:

1M (31-day) CAD deposit 0.95% 1x2 CAD (30-day) FRA 1.21% 2x3 CAD (31-day) FRA 2.01% Calculate the 3-month implied cash rate.

Options

  • A1.42%
  • B1.39%
  • C2.01%
  • D4.21%

How the community answered

(62 responses)
  • A
    10% (6)
  • B
    82% (51)
  • C
    3% (2)
  • D
    5% (3)

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