BP needs to borrow USD3 million in 3months for a six-month period. TO lock in the rate on this loan, BP buys 3 x 6 FRA on LIBOR at 5.80% from Citibank for a notional principal of USD3million. In 3months time, LIBOR6 is 6.20%. How much will Citibank pay BP? (Assume 360 days in a year)

(A): USD5830.90

(B): USD11,299.44

(C): USD1342.16

(D): USD5819.59

(E): None of the options in this question are correct.