$3($c$)$ Consider the following fixed$-$for$-$float forward rate agrement thatis

expires$/$settles in $30$ days:

is based on a notional prineple amount of $$1$ million,

is based on $90-$diay LIBOR.

specifies a forward rate of $5\%.$

Assume that the actual $90-$day LIBOR $30-$days from expiration is $6\%.$ Compute the cash

settlement payment at expiration and hence find the value of this forward rate agreement.

Also, Identify whether the long or short party position makes the payment.