A bank sells a "three against nine" $4,100,000 FRA for a six-month period beginning three months from today and ending nine months from today. The purpose of the FRA is to cover the interest rate risk caused by the maturity mismatch from having made a three-month Eurodollar loan and having accepted a nine-month Eurodollar deposit. The agreement rate with the buyer is 5.80 percent. There are actually 183 days in the six-month period. Assume that three months from today the settlement rate is 45/8 percent. Determine how much the FRA is worth and who pays whom--the buyer pays the seller or the seller pays the buyer. HINT: Generally, the buyer (seller) of a forward or option contract will incur gains (losses) if the market price at the contract's maturity is higher (lower) than the price in which the buyer (seller) agreed to buy (sell) the underlying asset. The buyer needs to pay the seller $46,656.27 The seller needs to pay the buyer $46,656.27 The buyer needs to pay the seller $23,926.44 The seller needs to pay the buyer $23,926.44. Assume the settlement rate in problem 10 is 6.7 percent. What is the solution now? The buyer needs to pay the seller $18,139.69. The seller needs to pay the buyer $18,139.69. The buyer needs to pay the seller $35,543.92 The seller needs to pay the buyer $35,543.92