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1. An FRA differs from an interest rate swap in which of the following ways?

   		Traditionally the payment in an FRA is delayed
   		FRAs are federally regulated
   		FRAs are used only by banks and swaps are used only by corporations
   		An FRA has more credit risk

1 points

Question 2

1. Which of the following is a 1 x 4 FRA?

   		The FRA expires in four months, and the underlying Eurodollar expires in one month.
   		The FRA expires in one month, and the underlying Eurodollar expires in four months.
   		The FRA expires in one month, and the underlying Eurodollar expires in three months.
   		The FRA expires in one month, and the underlying Eurodollar expires in five months.

1 points

Question 3

1. The payoff to the holder of a long FRA on 90-day LIBOR with a fixed rate of 8.75 percent, a notional amount of $20 million if the underlying is 9 percent at expiration is

   		$12,500
   		-$12,500
   		-$12,225
   		$12,225

1 points

Question 4

1. The fixed rate on an FRA expiring in 30 days on 180-day LIBOR with the 30-day rate being 5 percent and the 210 day rate being 6 percent is

   		5.5 percent
   		6.14 percent
   		5.15 percent
   		6 percent