ACI
3I0-012 · Question #699
You bought a EUR 8,000,000 6x9 FRA at 4.50%. The settlement rate is 3-month (90-day) EURIBOR, which is fixed at 3.50%. What is the settlement amount at maturity?
The correct answer is C. You pay EUR 19,826.52. See the full explanation below for the reasoning.
Question
You bought a EUR 8,000,000 6x9 FRA at 4.50%. The settlement rate is 3-month (90-day) EURIBOR, which is fixed at 3.50%. What is the settlement amount at maturity?
Options
- AYou pay EUR 20,000.00
- BYou receive EUR 20,000.00
- CYou pay EUR 19,826.52
- DYou receive EUR 19,826.52
How the community answered
(47 responses)- A2% (1)
- B13% (6)
- C81% (38)
- D4% (2)
Community Discussion
No community discussion yet for this question.