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QUESTION 1 Suppose you enter into a short 6 - month forward position at a forward price of $ 1 0 0 . What is
QUESTION Suppose you enter into a short month forward position at a forward price of $ What is the payoff in month for the underlying prices of $ QUESTION Suppose that a party wanted to enter into an FRA that expires in days and is based on day LIBOR. The dealer quotes a rate of on this FRA. Assume that at expiration, the day LIBOR is and the notional principal is $ Calculate the FRA payoff on a short position
QUESTION
Suppose you enter into a short month forward position at a forward price of $ What is the payoff in month for the underlying prices of $
QUESTION
Suppose that a party wanted to enter into an FRA that expires in days and is based on day LIBOR. The dealer quotes a rate of on this FRA.
Assume that at expiration, the day LIBOR is and the notional principal is $
Calculate the FRA payoff on a short position
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