Consider a 3 9 forward rate agreement. The current annualized 90-day money market rate is 2.4% and the 270-day rate is 3.2%. Based on the best available forecast, the 180- day rate at the expiration of the contract is expected to be 3.85%. Assuming a notional principal of $10 million, what value should be placed on the 3 9 FRA at time of settlement? (Hint: consider what is the current contract rate (round to 0.001%) in the FRA first and assume that the market rate is realized at the expected rate at its expiration. )

	A.	$20,157 paid from long to short.
	B.	$13,294 paid from short to long.
	C.	$13,490 paid from long to short.
	D.	$101,104 paid from long to short.