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3I0-012 · Question #556

3I0-012 Question #556: Real Exam Question with Answer & Explanation

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Question

You bought a USD 4,000000 6x9 FRA at 6.75%. The settlement rate is 3-month (90-day) BBA LIBOR, which is fixed at 5.50%. What is the settlement amount at maturity?

Options

  • AYou receive USD 12,330.46
  • BYou pay USD 12,330.46
  • CYou pay USD 12,163.81
  • DYou receive USD 12,163.81

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