5. The spot 3-month interest rate is 6% and you expect the same to go DOWN TO 4% AFTER 6 MONTHS If you want to take advantage of your view and make profit out of it enumerate your strateg (using FRA) and calculate the exact profit you will make on a notional principal of Rs.10 crores. The various FRA quotes of Banks are given below: wn to 4% after 6 month 1X3-6.05/6.10; 2X6-6.10/6.15; 3X9-6.15/6.18; 3X6-6.17/6.19; 6X12=6.20/6.22 6X9 6.19/6.23; 3X12=6.15/6.18, 9X12 = 6.33/6.38, 3X8 = 6.18/6.21 What will happen if on the settlement date the interest rate is a) 4% b) 7.5% c) Value the FRA if after 2 months after entering into the contract the interest rate is 4.5% pa