Consider a 2 5 FRA with a principal amount of Sh. 5 million. The current 60-day LIBOR is 8% and the 150-day LIBOR is 10%. Required a) The no-arbitrage price at initiation of the FRA (5 marks) b) Suppose the FRA price at initiation was 11%, determine the arbitrage strategy (5 marks) c) 10 days after initiation, the 50-day LIBOR is 7% and the 140-day LIBOR is 8%. Calculate the value of the FRA to the Long