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3I0-013 · Question #284

Your dealer bought a 6x9 USD 4,000,000.00 FRA at 0.75%. Settlement is now due and 3 months (90 days) USD LIBOR is 0.40%. What amount do you pay or receive?

The correct answer is D. Pay USD 3,448.65. See the full explanation below for the reasoning.

Question

Your dealer bought a 6x9 USD 4,000,000.00 FRA at 0.75%. Settlement is now due and 3 months (90 days) USD LIBOR is 0.40%. What amount do you pay or receive?

Options

  • AReceive USD 3,496.50
  • BPay USD 3,496.50
  • CPay USD 3,500.00
  • DPay USD 3,448.65

How the community answered

(48 responses)
  • A
    13% (6)
  • B
    4% (2)
  • C
    6% (3)
  • D
    77% (37)

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