a.) A merchant will receive $10 million in three months to be invested for a 6-month period. He is afraid interest rates might fall in which case the investment return will be lower. How would he use FRA to lock in a lending rate? b.) The 3x9 FRA has a contract rate of 3%. What is the payoff of this contract if the 6-month interest rate turns out to be 4% in three months?