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Question 16 Suppose that a party wanted to enter an FRA that poin 121 days and is based on 7-day LIBOR The desiruolos a rate

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Question 16 Suppose that a party wanted to enter an FRA that poin 121 days and is based on 7-day LIBOR The desiruolos a rate of 0.05 on the FRA Assume that a praction, the 7-day LIBORIS 0.054, and the notion amounts USD10,000,000 What is the payoff of the FRA short position? Goston 16 of 2

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