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Assume a 120Dv300D FRA with an agreed rate for investing of 2% pa and a nominal face value of $100m. At settlement, the reference rate

Assume a 120Dv300D FRA with an agreed rate for investing of 2% pa and a nominal face value of $100m. At settlement, the reference rate is 1.5% pa. Calculate the payment or receipt for the customer and discuss the implications if this customer is a speculator.

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