Nestle rolls over a $25M loan priced at LIBOR3 on a 3 month basis. The company feels that interest rates are rising and that rates will be higher at the next roll-over in three months. Suppose the current LIBOR3 is 4.4375% and Nestle buys a "3 x 3" FRA on LIBOR at 5% from Credit Suisse.

A.) In three months, interest rates have risen to 5.25%. How much will Nestle receive/pay on its FRA?

B.) After three months, interest rates have fallen to 4.25%. How much will Nestle receive/pay on its FRA?