Characteristics of FRA includes:

I. The contract period starts from today and lasts till the date specified the agreement;

II. binding obligations for both parties involved in the agreement;

III. The agreed rate is set at the beginning of the contract;

IV. The settlement date represents the ending of the binding obligations between parties;

V. Compensation amount is calculated by multiplying the unadjusted interest rate difference by notional principal amount.

Select one:

a.Only III

b.Only I and III

c.Only III and V

d.Only I, III and V

e.Only II and III

f.Only I, II and III

g.All of the options

h.None of the options