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Can you help me to show the all calculation and interpretation of all three sub questions? Company ExtraBig has approached Monash bank to purchase an

Can you help me to show the all calculation and interpretation of all three sub questions?
Company ExtraBig has approached Monash bank to purchase an FRA to hedge a position, for 90 days based on $600,000. The FRA rate is set at 6% and by settlement the reference rate has risen to 7%. (a) How is the FRA settled? Illustrate your answer. (b) Calculate the actual dollar amount of the payment. (c) Has the buyer fully hedged their interest rate risk? Explain fully. FRA rate = fixed rate FRA settlement: Buyer Seller Step 1. Calculate price @ Market rate 500,000 1 + (0.0775 X 180/36

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